Envision Healthcare (Envision Healthcare) Interest Coverage : 2.41 (As of Jun. 2018)

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What is Envision Healthcare Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Envision Healthcare's Operating Income for the three months ended in Jun. 2018 was $162 Mil. Envision Healthcare's Interest Expense for the three months ended in Jun. 2018 was $-67 Mil. Envision Healthcare's interest coverage for the quarter that ended in Jun. 2018 was 2.41. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Envision Healthcare's Interest Coverage or its related term are showing as below:

EVHC's Interest Coverage is not ranked ^*
in the Healthcare Providers & Services industry.
Industry Median: 8.92
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Envision Healthcare Interest Coverage Historical Data

The historical data trend for Envision Healthcare's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Envision Healthcare Interest Coverage Chart

Envision Healthcare Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Interest Coverage

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11.08

4.61

4.65

3.95

2.90

Envision Healthcare Quarterly Data
	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18
Interest Coverage	Get a 7-Day Free Trial															3.48	2.89	2.39	2.41	2.41

Competitive Comparison of Envision Healthcare's Interest Coverage

For the Medical Care Facilities subindustry, Envision Healthcare's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Envision Healthcare's Interest Coverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Envision Healthcare's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Envision Healthcare's Interest Coverage falls into.

Envision Healthcare Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Envision Healthcare's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Envision Healthcare's Interest Expense was $-231 Mil. Its Operating Income was $670 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,263 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2017 )	/	Interest Expense (A: Dec. 2017 )
	=	-1	*	669.7	/	-231.1
	=	2.90

Envision Healthcare's Interest Coverage for the quarter that ended in Jun. 2018 is calculated as

Here, for the three months ended in Jun. 2018, Envision Healthcare's Interest Expense was $-67 Mil. Its Operating Income was $162 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,614 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2018 )	/	Interest Expense (Q: Jun. 2018 )
	=	-1	*	162.4	/	-67.4
	=	2.41

The higher the ratio, the stronger the company's Financial Strength is.

Envision Healthcare (NYSE:EVHC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Envision Healthcare Interest Coverage Related Terms

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Envision Healthcare (Envision Healthcare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Envision Healthcare Corp (NYSE:EVHC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

Website

https://www.evhc.net

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