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IPC Healthcare (IPC Healthcare) Interest Coverage : 16.41 (As of Sep. 2015)


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What is IPC 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. IPC Healthcare's Operating Income for the three months ended in Sep. 2015 was $6.2 Mil. IPC Healthcare's Interest Expense for the three months ended in Sep. 2015 was $-0.4 Mil. IPC Healthcare's interest coverage for the quarter that ended in Sep. 2015 was 16.41. The higher the ratio, the stronger the company's financial strength is.

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


IPCM'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.


IPC Healthcare Interest Coverage Historical Data

The historical data trend for IPC 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.

* Premium members only.

IPC Healthcare Interest Coverage Chart

IPC Healthcare Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 378.07 254.24 156.19 125.22 48.94

IPC Healthcare Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.63 59.56 38.31 50.87 16.41

Competitive Comparison of IPC Healthcare's Interest Coverage

For the Medical Care Facilities subindustry, IPC 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.


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

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

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



IPC 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.

IPC Healthcare's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, IPC Healthcare's Interest Expense was $-1.3 Mil. Its Operating Income was $65.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $80.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*64.989/-1.328
=48.94

IPC Healthcare's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the three months ended in Sep. 2015, IPC Healthcare's Interest Expense was $-0.4 Mil. Its Operating Income was $6.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2015 )/Interest Expense (Q: Sep. 2015 )
=-1*6.169/-0.376
=16.41

* 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.

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


IPC Healthcare  (NAS:IPCM) 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 .


IPC Healthcare Interest Coverage Related Terms

Thank you for viewing the detailed overview of IPC Healthcare's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


IPC Healthcare (IPC Healthcare) Business Description

Traded in Other Exchanges
N/A
Address
IPC The Hospitalist Co Inc a Delaware corporation was incorporated in January 1998. The Company is a provider of hospitalist services in the United States. The Company's affiliated hospitalists, physicians, nurse practitioners and physician assistants provide hospitalist solutions at hospitals and other inpatient facilities. As of December 31, 2013, its over 1,760 affiliated hospitalists, including physicians, nurse practitioners and physician assistants (collectively 'affiliated hospitalists') provides hospitalist solutions at over 410 hospitals and 1,100 other inpatient and post-acute care facilities primarily in 26 states. Collectively, its affiliated hospitalists work with more than 39,000 referring physicians and 3,600 health plans. The Company has increased its practice groups to 295 since the beginning of its operation. It successfully integrated these acquisitions into the Company and onto its proprietary technology based practice management system known as IPC-Link. The company, through its affiliated hospitalists, provides, manages and coordinates the care of hospitalized patients and serves as the inpatient partner of primary care physicians and specialists, allowing them to focus their time and resources on their office based practices or their specialties. It also provides its affiliated hospitalists with the infrastructure, information management systems, specialized training programs and administrative support necessary to perform these services. The Company's hospitalist programs are structured to provide acute care hospitals with a consistent on-site physician presence that typically results in fewer admitting physicians overseeing patients in the hospital, thereby reducing process variability and enhancing the ability to implement standardized practices. It provides its affiliated hospitalists with access to IPC-Link through its web-based 'Virtual Office' portal to support their clinical, administrative and communications needs. IPC-Link is distinctive in its ability to capture the results of each doctor-patient encounter and organize these results into a searchable database. IPC-Link enables its affiliated hospitalists to view and record important patient data, and allows hospitalists in a practice group to share patient information as needed. The Company uses IPC-Link to create customized surveys for patients who are discharged to home from an inpatient facility. To assist in monitoring and documenting the patient's discharge or transition to outpatient care. IPC-Link provides its call center with patient information and follow-up instructions. The Company's operations and relationships with healthcare providers such as hospitals, other healthcare facilities, and healthcare professionals are subject to extensive and increasing regulation by numerous federal, state, and local government entities. The Company competes with many types of healthcare providers, including teaching, research and government institutio
Executives
Mark J Brooks director C/O SCALE VENTURE MANAGEMENT, 950 TOWER LANE, SUITE 400, FOSTER CITY CA 94404
Chuck Timpe director 11111 SANTA MONICA BLVD STE. 550, LOS ANGELES CA 90025
Thomas P Cooper director PO BOX 3335, SANTA FE CA 92067
Devra G Shapiro officer: Chief Administrative Officer C/O IPC THE HOSPITALIST COMPANY, INC., 4605 LANKERSHIM BLVD SUITE 617, NORTH HOLLYWOOD CA 91602
Bank Of America Corp /de/ director BANK OF AMERICA CORPORATE CENTER, 100 N TRYON ST, CHARLOTTE NC 28255
Morgenthaler Partners Vii Lp 10 percent owner 50 PUBLIC SQUARE, SUITE 2700, CLEVELAND OH 44113
Bankamerica Investment Corp 10 percent owner 231 SOUTH LASALLE STREET, CHICAGO IL 60697
Barry M Smith director 4800 N SCOTTSDALE RD, SUITE 5000, SCOTTSDALE AZ 85251