Extendicare (Extendicare) Interest Coverage : 4.10 (As of Dec. 2023)

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Extendicare Interest Coverage Definition

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. Extendicare's Operating Income for the three months ended in Dec. 2023 was $14.9 Mil. Extendicare's Interest Expense for the three months ended in Dec. 2023 was $-3.6 Mil. Extendicare's interest coverage for the quarter that ended in Dec. 2023 was 4.10. The higher the ratio, the stronger the company's financial strength is.

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

EXETF' s Interest Coverage Range Over the Past 10 Years
Min: 1.19 Med: 2.17 Max: 3.18
Current: 2.91

EXETF's Interest Coverage is ranked worse than
73.83% of 405 companies
in the Healthcare Providers & Services industry
Industry Median: 9.08 vs EXETF: 2.91

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

Extendicare Interest Coverage Historical Data

The historical data trend for Extendicare'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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Extendicare Interest Coverage Chart

Extendicare Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.83

3.18

2.20

1.19

2.91

Extendicare Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															0.27	4.13	1.38	2.14	4.10

Competitive Comparison

For the Medical Care Facilities subindustry, Extendicare'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.

Extendicare Interest Coverage Distribution

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

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

Extendicare 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.

Extendicare'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, Extendicare's Interest Expense was $-16.1 Mil. Its Operating Income was $46.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $234.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	46.931	/	-16.103
	=	2.91

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

Here, for the three months ended in Dec. 2023, Extendicare's Interest Expense was $-3.6 Mil. Its Operating Income was $14.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $234.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	14.896	/	-3.633
	=	4.10

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

Extendicare (OTCPK:EXETF) 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 .

Extendicare Interest Coverage Related Terms

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

Extendicare (Extendicare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Extendicare Inc (OTCPK:EXETF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

5XE:Germany EXE:Canada

Address

3000 Steeles Avenue East, Suite 700, Markham, ON, CAN, L3R 9W2

Website

https://www.extendicare.com

Extendicare Inc is a senior care provider in Canada, focused on long-term care and home health care. The company has three main business segments namely Long-term Care, Home Health Care, and Managed Services. The Long-term Care segment, operating under the Extendicare brand, represents 53 owned homes in Ontario, Alberta and Manitoba. The Home Health Care segment, operating under the ParaMed brand, provides more than 9 million hours of home health care services annually in Ontario, Alberta, Manitoba and Nova Scotia. The Managed Services segment, operating under the Extendicare Assist and SGP Purchasing Partner Network brands, provides management, consulting and group purchasing services to other care providers across Canada.