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United Therapeutics Interest Coverage

: 32.55 (As of Jun. 2022)
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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. United Therapeutics's Operating Income for the three months ended in Jun. 2022 was $202 Mil. United Therapeutics's Interest Expense for the three months ended in Jun. 2022 was $-6 Mil. United Therapeutics's interest coverage for the quarter that ended in Jun. 2022 was 32.55. The higher the ratio, the stronger the company's financial strength is.

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

UTHR' s Interest Coverage Range Over the Past 10 Years
Min: 16.2   Med: 30.61   Max: 272.23
Current: 43.98


UTHR's Interest Coverage is ranked worse than
64.78% of 389 companies
in the Biotechnology industry
Industry Median: 172.69 vs UTHR: 43.98

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


United Therapeutics Interest Coverage Historical Data

The historical data trend for United Therapeutics'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.

* Premium members only.

United Therapeutics Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 113.88 57.94 - 25.26 29.89

United Therapeutics Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 47.28 49.72 36.13 61.28 32.55

Competitive Comparison

For the Biotechnology subindustry, United Therapeutics'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.

   

United Therapeutics Interest Coverage Distribution

For the Biotechnology industry and Healthcare sector, United Therapeutics's Interest Coverage distribution charts can be found below:

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



United Therapeutics 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.


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

United Therapeutics's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, United Therapeutics's Interest Expense was $-19 Mil. Its Operating Income was $556 Mil. And its Long-Term Debt & Capital Lease Obligation was $800 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*555.9/-18.6
=29.89

United Therapeutics's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, United Therapeutics's Interest Expense was $-6 Mil. Its Operating Income was $202 Mil. And its Long-Term Debt & Capital Lease Obligation was $800 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*201.8/-6.2
=32.55

* 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.


United Therapeutics  (NAS:UTHR) 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 .


United Therapeutics Interest Coverage Related Terms

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


United Therapeutics Business Description

United Therapeutics logo
Traded in Other Exchanges
Address
1040 Spring Street, Silver Spring, MD, USA, 20910
United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.
Executives
Benkowitz Michael officer: President and COO C/O UNITED THERAPEUTICS CORP 1040 SPRING STREET SILVER SPRING MD 20910
Maxwell Linda director 1040 SPRING STREET SILVER SPRING NC 27709
Thompson Tommy G director 7711 CARONDELET ST. LOUIS MO 63105
Mesa Nilda director C/O UNITED THERAPEUTICS CORPORATION 1040 SPRING STREET SILVER SPRING MD 20910
Klein Katherine J director STEINBERG HALL-DIETRICH HALL 3620 LOCUST WALK PHILADELPHIA PA 19104
Giltner Richard director C/O UNITED THERAPEUTICS CORPORTION 1735 CONNECTICUT AVE. NW WASHINGTON DC 20009
Olian Judy D. director 2000 AVENUE OF THE STARS 12TH FL LOS ANGELES CA 90067
Edgemond James officer: CFO and Treasurer 1040 SPRING STREET SILVER SPRING MD 20910
Zaccardelli David officer: EVP & Chief Operating Officer 300 TRI STATE INTERNATIONAL SUITE 272 LINCOLNSHIRE IL 60069
Eli Lilly & Co 10 percent owner LILLY CORPORATE CENTER DROP CODE 1094 INDIANAPOLIS IN 46285
Ferrari John Maxim officer: CFO & Treasurer 1110 SPRING STREET SILVER SPRING MD 20910
Patusky Christopher director
Hicks Henry Beecher Iii director C/O UNITED THERAPEUTICS CORP 1110 SPRING STREET SILVER SPRINGS MD 20910
Gray R Paul director C/O UNITED THERAPEUTICS CORP 1110 SPRING STREET SILVER SPRINGS MD 20910
Dwek Raymond director

United Therapeutics Headlines

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