Molina Healthcare (STU:MHG) Interest Coverage : 15.78 (As of Mar. 2024)

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What is Molina 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. Molina Healthcare's Operating Income for the three months ended in Mar. 2024 was €392 Mil. Molina Healthcare's Interest Expense for the three months ended in Mar. 2024 was €-25 Mil. Molina Healthcare's interest coverage for the quarter that ended in Mar. 2024 was 15.78. The higher the ratio, the stronger the company's financial strength is.

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

STU:MHG' s Interest Coverage Range Over the Past 10 Years
Min: 1.26 Med: 9.17 Max: 14.43
Current: 14.3

STU:MHG's Interest Coverage is ranked better than
76.92% of 13 companies
in the Healthcare Plans industry
Industry Median: 7.85 vs STU:MHG: 14.30

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

Molina Healthcare Interest Coverage Historical Data

The historical data trend for Molina 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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Molina Healthcare Interest Coverage Chart

Molina Healthcare Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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12.00

10.57

8.50

12.55

14.43

Molina Healthcare Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															16.25	16.41	13.30	11.70	15.78

Competitive Comparison of Molina Healthcare's Interest Coverage

For the Healthcare Plans subindustry, Molina 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.

Molina Healthcare's Interest Coverage Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, Molina Healthcare's Interest Coverage distribution charts can be found below:

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

Molina 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.

Molina Healthcare'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, Molina Healthcare's Interest Expense was €-100 Mil. Its Operating Income was €1,442 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,187 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1442.441	/	-99.953
	=	14.43

Molina Healthcare's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Molina Healthcare's Interest Expense was €-25 Mil. Its Operating Income was €392 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,191 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	391.92	/	-24.84
	=	15.78

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

Molina Healthcare (STU:MHG) 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 .

Molina Healthcare Interest Coverage Related Terms

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

Molina Healthcare (STU:MHG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Molina Healthcare Inc (STU:MHG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MOH:USA MHG:Germany

Address

200 Oceangate, Suite 100, Long Beach, CA, USA, 90802

Website

https://www.molinahealthcare.com

Molina Healthcare Inc offers healthcare plans focused on Medicaid-related solutions for low-income families and individuals. Its health plans are operated by a network of subsidiaries, each of which is licensed as a health maintenance organization (HMO). In addition to its Health Plans segment, Molina has a Medicaid,Medicare, and Marketplace segment that represent the government-funded or sponsored programs under their management information systems. Molina's Medicaid plans receive revenue on a per-member per-month basis from state government agencies, and its Medicare Advantage plans receive revenue from managed care plans that contract with the Centers for Medicaid and Medicare (CMS). Molina also provides plans through health insurance exchanges.

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