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Select Medical Holdings Interest Coverage

: 4.44 (As of Sep. 2021)
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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. Select Medical Holdings's Operating Income for the three months ended in Sep. 2021 was $150 Mil. Select Medical Holdings's Interest Expense for the three months ended in Sep. 2021 was $-34 Mil. Select Medical Holdings's interest coverage for the quarter that ended in Sep. 2021 was 4.44. The higher the ratio, the stronger the company's financial strength is.

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

NYSE:SEM' s Interest Coverage Range Over the Past 10 Years
Min: 1.76   Med: 3.31   Max: 5.81
Current: 5.81

1.76
5.81

NYSE:SEM's Interest Coverage is ranked lower than
64% of the 400 Companies
in the Healthcare Providers & Services industry.

( Industry Median: 12.37 vs. NYSE:SEM: 5.81 )

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


Select Medical Holdings Interest Coverage Historical Data

The historical data trend for Select Medical Holdings'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.

Select Medical Holdings Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.76 2.30 2.10 2.35 3.71

Select Medical Holdings Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 4.59 4.60 5.87 8.38 4.44

Competitive Comparison

For the Medical Care Facilities subindustry, Select Medical Holdings'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.

   

Select Medical Holdings Interest Coverage Distribution

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

* The bar in red indicates where Select Medical Holdings's Interest Coverage falls into.



Select Medical Holdings 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.

Select Medical Holdings's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Select Medical Holdings's Interest Expense was $-153 Mil. Its Operating Income was $568 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,265 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*567.657/-153.011
=3.71

Select Medical Holdings's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, Select Medical Holdings's Interest Expense was $-34 Mil. Its Operating Income was $150 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,294 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*150.255/-33.825
=4.44

* 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.


Select Medical Holdings  (NYSE:SEM) 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 .


Select Medical Holdings Interest Coverage Related Terms

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


Select Medical Holdings Business Description

Select Medical Holdings logo
Industry
Traded in Other Exchanges
Address
4714 Gettysburg Road, P.O. Box 2034, Mechanicsburg, PA, USA, 17055
Select Medical Holdings Corp is a healthcare company that operates through four main segments: critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and Concentra institutions. Critical illness recovery hospitals and rehabilitation centers are designed for patients requiring extended recovery time with medical services. These two sectors combined compose roughly half of the total revenue and include over 100 critical illness recovery hospitals and inpatient rehab facilities. The outpatient rehabilitation segment includes over 1,700 rehabilitation clinics. The Concentra segment includes over 500 institutions. The company is headquartered in Pennsylvania, and it operates across the United States.
Executives
Ortenzio Rocco A director, officer: Vice Chairman and Co-Founder SELECT MEDICAL CORP 4716 OLD GETTYSBURG RD PO BOX 2034 MECHANICSBURG PA 17055
Romberger Scott A officer: Senior Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Tarvin Michael E officer: Executive Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Saich John A. officer: Executive Vice President C/O SELECT MEDICAL HOLDINGS CORPORATION 4714 GETTYSBURG ROAD MECHANICSBURG PA 17055
Chernow David S officer: President and CEO C/O JUNIOR ACHIEVEMENT INC ONE EDUCATION WAY COLORADO SPRINGS CO 80906
Jackson Martin F officer: Executive Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Thomas Daniel director C/O SELECT MEDICAL CORPORATION 4714 GETTYSBURG ROAD P.O. BOX 2034 MECHANICSBURG PA 17055
Cressey Bryan C director C/O CLARION TECHNOLOGIES INC 235 CENTRAL AVE HOLLAND MI 49423
Scully Thomas director 320 PARK AVENUE, SUITE # 2500 NEW YORK NM 10022
Carson Russell L director 320 PARK AVENUE STE 2500 NEW YORK NY 10022
Frist William H. director 600 MONTGOMERY STREET SAN FRANCISCO CA 94111
Ely James S. Iii director 4000 MERIDIAN BLVD FRANKLIN TN 37067
Ortenzio Robert A director, officer: Exec. Chairman and Co-Founder 4718 OLD GETTYSBURG RD POST OFFICE BOX 2034 MECHANICSBURG PA 30309
Tavenner Marilyn B director BOULDERS III 7800 BEAUFORT SPRING DR RICHMOND VA 23235
Breighner Robert G. Jr officer: Vice President, Compliance C/O SELECT MEDICAL HOLDINGS CORPORATION 4714 GETTYSBURG ROAD MACHANICSBURG PA 17055

Select Medical Holdings Headlines

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