Health Net (Health Net) Interest Coverage : 16.21 (As of Dec. 2015)

View and export this data going back to . Start your Free Trial

What is Health Net 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. Health Net's Operating Income for the three months ended in Dec. 2015 was $137 Mil. Health Net's Interest Expense for the three months ended in Dec. 2015 was $-8 Mil. Health Net's interest coverage for the quarter that ended in Dec. 2015 was 16.21. The higher the ratio, the stronger the company's financial strength is.

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

HNT's Interest Coverage is not ranked ^*
in the Healthcare Plans industry.
Industry Median: 7.86
* 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.

Health Net Interest Coverage Historical Data

The historical data trend for Health Net'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.

Health Net Interest Coverage Chart

Health Net Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

Get a 7-Day Free Trial

6.03

1.95

9.28

10.19

14.71

Health Net Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
Interest Coverage	Get a 7-Day Free Trial															17.20	9.41	16.70	18.22	16.21

Competitive Comparison of Health Net's Interest Coverage

For the Healthcare Plans subindustry, Health Net'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.

Health Net's Interest Coverage Distribution in the Healthcare Plans Industry

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

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

Health Net 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.

Health Net's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Health Net's Interest Expense was $-33 Mil. Its Operating Income was $490 Mil. And its Long-Term Debt & Capital Lease Obligation was $400 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	489.837	/	-33.309
	=	14.71

Health Net's Interest Coverage for the quarter that ended in Dec. 2015 is calculated as

Here, for the three months ended in Dec. 2015, Health Net's Interest Expense was $-8 Mil. Its Operating Income was $137 Mil. And its Long-Term Debt & Capital Lease Obligation was $400 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2015 )	/	Interest Expense (Q: Dec. 2015 )
	=	-1	*	136.678	/	-8.431
	=	16.21

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

Health Net (NYSE:HNT) 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 .

Health Net Interest Coverage Related Terms

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

Health Net (Health Net) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Health Net Inc (NYSE:HNT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.health.net

Health Net Inc was incorporated in the state of Delaware on 1990. The Company is an integrated managed care organization that delivers managed health care services. The Company's health plans and government contracts subsidiaries provide health benefits through its health maintenance organizations (HMOs), insured preferred provider organizations (PPOs) and point of service (POS). Its subsidiaries also offer managed health care products related to behavioral health and prescription drugs. The Company also owns health and life insurance companies licensed to sell exclusive provider organization (EPO), PPO, POS and indemnity products as well as auxiliary non-health products such as life and accidental death and dismemberment, dental, vision, behavioral health and disability insurance. These products are offered by its health and life insurance subsidiaries, which are licensed to sell insurance in approximately 49 states and the District of Columbia. It operates within three reportable segments: West Operations, Northeast Operations and Government Contracts. The Company's West Operations segment includes the operations of its commercial, Medicare and Medicaid health plans, the operations of its health and life insurance companies and its behavioral health and pharmaceutical services subsidiaries in Arizona, California and Oregon. The Company offers a full spectrum of managed health care products and services. It offers a range of Medicare products, including Medicare Advantage plans with and without prescription drug coverage, Medicare Part D stand-alone prescription drug plans ('PDP'), and Medicare supplement products that supplement traditional fee-for-service Medicare coverage. Its portfolio of Medicare Advantage plans focuses on simplicity so that members can sign up and use benefits with minimal paperwork and receive coverage that starts immediately upon enrollment. The Company provides ASO products to large employer groups in California. Its Government Contracts segment includes its TRICARE contract for the North Region and other health care-related government contracts that it administers for the U.S. Department of Defense (the 'Department of Defense') and the U.S. Department of Veterans Affairs. Certain components of these contracts are subcontracted to unrelated third parties. Its wholly-owned subsidiary, Health Net Federal Services, LLC ('HNFS'), administers a large managed care federal contract with the Department of Defense under the TRICARE program in the North Region. The Company maintains a network of qualified physicians, hospitals and other health care providers in each of the states in which it offers network based managed care products and services. It markets its products and services to individuals and employer groups through inside sales staff, independent brokers, agents and consultants and through the Internet. The Company operates in a highly competitive environment in an industry. Its health plans face subst

Executives

Mary Anne Citrino	director	345 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10154
Craver Theodore F Jr	director	DUKE ENERGY CORPORATION, 550 SOUTH TRYON STREET - DEC45A, CHARLOTTE NC 28202
Kathleen Alyce Waters	officer: SVP, Gen. Counsel & Secretary	C/O DAVITA INC., 2000 16TH STREET, DENVER CO 80202
Jay M Gellert	director, officer: President, CEO	6520 PLATT AVENUE, #695, WEST HILL CA 91307
Gale S Fitzgerald	director	800 DELEWARE AVE, COMPUTER TASK GROUP INC, BUFFALO NY 14209
James Woys	officer: EVP, CFO and COO	21650 OXNARD STREET, 22ND FLOOR, WOODLAND HILLS CA 91367
Patrick Foley	director	C/O GLENBOROUGH REALTY TRUST, 400 SOUTH EL CAMINO REAL, SAN MATEO CA 94402
Steven H Nelson	officer: President Health Net of the NE	21650 OXNARD STREET, WOODLAND HILLS CA 91367
Anthony S Piszel	officer: EVP & Chief Financial Officer	C/O PRUDENTIAL FINANCIAL INC, 751 BROAD ST 4TH FL, NEWARK NJ 07102
Maurice Hebert	officer: Corporate Controller	C/O WELLCARE HEALTH PLANS, INC., 8735 HENDERSON ROAD, TAMPA FL 33634
Richard W Hanselman	director	21650 OXNARD STREET, 22ND FLOOR, WOODLAND HILLS CA 91367
J Thomas Bouchard	director	5301 N IRONWOOD RD, MILWAUKEE WI 53217