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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. Change Healthcare's Operating Income for the three months ended in Jun. 2022 was $30 Mil. Change Healthcare's Interest Expense for the three months ended in Jun. 2022 was $-57 Mil. Change Healthcare's interest coverage for the quarter that ended in Jun. 2022 was 0.54. The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Change Healthcare Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Change Healthcare's Interest Coverage or its related term are showing as below:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
The historical data trend for Change 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.
Change Healthcare Annual Data | |||||||||||||||
Trend | Mar17 | Mar18 | Mar19 | Mar20 | Mar21 | Mar22 | |||||||||
Interest Coverage | Get a 7-Day Free Trial | No Debt | No Debt | - | 0.22 | 0.65 |
Change Healthcare Quarterly Data | |||||||||||||||||||
Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | |
Interest Coverage | Get a 7-Day Free Trial | 0.79 | 0.24 | 0.54 | 1.03 | 0.54 |
For the Health Information Services subindustry, Change 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.
For the Healthcare Providers & Services industry and Healthcare sector, Change Healthcare's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Change Healthcare's Interest Coverage falls into.
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.
Change Healthcare's Interest Coverage for the fiscal year that ended in Mar. 2022 is calculated as
Here, for the fiscal year that ended in Mar. 2022, Change Healthcare's Interest Expense was $-234 Mil. Its Operating Income was $152 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,632 Mil.
Interest Coverage | = | -1 | * | Operating Income (A: Mar. 2022 ) | / | Interest Expense (A: Mar. 2022 ) |
= | -1 | * | 151.644 | / | -234.244 | |
= | 0.65 |
Change Healthcare's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as
Here, for the three months ended in Jun. 2022, Change Healthcare's Interest Expense was $-57 Mil. Its Operating Income was $30 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,535 Mil.
Interest Coverage | = | -1 | * | Operating Income (Q: Jun. 2022 ) | / | Interest Expense (Q: Jun. 2022 ) |
= | -1 | * | 30.442 | / | -56.87 | |
= | 0.54 |
* 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.
Change Healthcare (NAS:CHNG) 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 .
Thank you for viewing the detailed overview of Change Healthcare's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Tracy Byers | officer: SVP and GM, Enterprise Imaging | C/O CHANGE HEALTHCARE INC. 424 CHURCH STREET, SUITE 1400 NASHVILLE TN 37219 |
Steven B. Martin | officer: EVP, Enterprise Technology | 3055 LEBANON PIKE SUITE 1000 NASHVILLE TN 37214 |
Nella Domenici | director | C/O ALLIANCEBERNSTEIN, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105 |
Paul Rareshide | officer: SVP, Corporate Controller | C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214 |
Fredrik J Eliasson | officer: EVP & CFO | 500 WATER STREET, JACKSONVILLE FL 32202 |
De Crescenzo Neil E. | director, officer: President & CEO | C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214 |
Diana Mckenzie | director | METLIFE, 200 PARK AVENUE, NEW YORK NY 10166 |
Roderick H. O'reilly | officer: See Remarks | C/O CHANGE HEALTHCARE INC., 3055 LEBANON PIKE, SUITE 1000, NASHVILLE TN 37214 |
August Calhoun | officer: See Remarks | C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214 |
Thomas Mcenery | officer: EVP & Chief Marketing Officer | |
Bansi Nagji | director | MCKESSON CORPORATION, 6555 STATE HIGHWAY 161, IRVING TX 75039 |
Alex P. Choy | officer: See Remarks | C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214 |
Linda Whitley-taylor | officer: EVP & Chief People Officer | C/O BENSON HILL, INC., 1001 NORTH WARSON ROAD, SAINT LOUIS MO 63132 |
Phillip W. Roe | director | 20 BURTON HILLS BOULEVARD SUITE 100 NASHVILLE TN 37215 |
Kriten Joshi | officer: See Remarks | C/O CHANGE HEALTHCARE INC. 3055 LEBANON PIKE, SUITE 1000 NASHVILLE TN 37214 |
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