DaVita (DaVita) Interest Coverage

: 4.27 (As of Dec. 2023)

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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. DaVita's Operating Income for the three months ended in Dec. 2023 was $411 Mil. DaVita's Interest Expense for the three months ended in Dec. 2023 was $-96 Mil. DaVita's interest coverage for the quarter that ended in Dec. 2023 was 4.27. The higher the ratio, the stronger the company's financial strength is.

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

DVA' s Interest Coverage Range Over the Past 10 Years
Min: 3.06 Med: 4 Max: 6.21
Current: 4.02

DVA's Interest Coverage is ranked worse than
65.92% of 402 companies
in the Healthcare Providers & Services industry
Industry Median: 8.295 vs DVA: 4.02

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

DaVita Interest Coverage Historical Data

The historical data trend for DaVita'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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DaVita Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.96

5.54

6.21

3.68

4.02

DaVita Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.52	3.02	3.83	4.98	4.27

Competitive Comparison

For the Medical Care Facilities subindustry, DaVita'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.

DaVita Interest Coverage Distribution

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

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

DaVita 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.

DaVita's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, DaVita's Interest Expense was $-399 Mil. Its Operating Income was $1,601 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,599 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1601.003	/	-398.551
	=	4.02

DaVita's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, DaVita's Interest Expense was $-96 Mil. Its Operating Income was $411 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,599 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	410.63	/	-96.19
	=	4.27

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

DaVita (NYSE:DVA) 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 .

DaVita Interest Coverage Related Terms

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

DaVita (DaVita) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » DaVita Inc (NYSE:DVA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TRL:Germany TRL:Germany DVAI34:Brazil

Address

2000 16th Street, Denver, CO, USA, 80202

Website

https://www.davita.com

DaVita is the largest provider of dialysis services in the United States, boasting market share that eclipses 35% when measured by both patients and clinics. The firm operates over 3,000 facilities worldwide, mostly in the U.S., and treats over 240,000 patients globally each year. Government payers dominate U.S. dialysis reimbursement. DaVita receives about two thirds of U.S. sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. However, while commercial insurers represented only about 10% of the U.S. patients treated, they represent nearly all of the profits generated by DaVita in the U.S. dialysis business.

Executives

Christopher Michael Berry	officer: Chief Accounting Officer	C/O SONDER HOLDINGS INC., 101 15TH ST., SAN FRANCISCO CA 94103
Kathleen Alyce Waters	officer: Chief Legal Officer	C/O DAVITA INC., 2000 16TH STREET, DENVER CO 80202
Wendy Lee Schoppert	director	6105 TRENTON LANE NORTH, MINNEAPOLIS MN 55442
Phyllis R Yale	director
Javier Rodriguez	officer: Chief Executive Officer, DKC	601 HAWAII ST., EL SEGUNDO CA 90245
Barbara J Desoer	director	CITIGROUP INC., 388 GREENWICH STREET, 17TH FLOOR, NEW YORK NY 10013
James O Hearty	officer: Chief Compliance Officer	2000 16TH STREET, DENVER CO 80202
Charles Berg	director, officer: Executive Chair, DMG	48 MONROE TURNPIKE, TRUMBULL CT 06611
John M Nehra	director	1119 ST PAUL ST, BALTIMORE MD 21202
Adam H Schechter	director	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Michael David Staffieri	officer: Chief Operating Officer, DKC	2000 16TH STREET, DENVER CO 80202
Jason M. Hollar	director	3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
Paula A Price	director	ONE CVS DRIVE, WOONSOCKET RI 02895
Pamela M Arway	director	601 HAWAII ST., EL SEGUNDO CA 90245
Gregory J. Moore	director	130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601