Ramsay Health Care (Ramsay Health Care) Interest Coverage : 1.40 (As of Dec. 2023)

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What is Ramsay Health Care 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. Ramsay Health Care's Operating Income for the six months ended in Dec. 2023 was $295 Mil. Ramsay Health Care's Interest Expense for the six months ended in Dec. 2023 was $-210 Mil. Ramsay Health Care's interest coverage for the quarter that ended in Dec. 2023 was 1.40. 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. Ramsay Health Care Ltd interest coverage is 2.15, which is low.

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

RMSYF' s Interest Coverage Range Over the Past 10 Years
Min: 1.07 Med: 5.72 Max: 6.61
Current: 2.15

RMSYF's Interest Coverage is ranked worse than
79.51% of 405 companies
in the Healthcare Providers & Services industry
Industry Median: 9.08 vs RMSYF: 2.15

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

Ramsay Health Care Interest Coverage Historical Data

The historical data trend for Ramsay Health Care'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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Ramsay Health Care Interest Coverage Chart

Ramsay Health Care Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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5.59

2.32

1.07

1.57

2.12

Ramsay Health Care Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															1.43	-	1.12	10.92	1.40

Competitive Comparison of Ramsay Health Care's Interest Coverage

For the Medical Care Facilities subindustry, Ramsay Health Care'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.

Ramsay Health Care's Interest Coverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's Interest Coverage distribution charts can be found below:

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

Ramsay Health Care 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.

Ramsay Health Care's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Ramsay Health Care's Interest Expense was $-175 Mil. Its Operating Income was $372 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,651 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	371.946	/	-175.302
	=	2.12

Ramsay Health Care's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Ramsay Health Care's Interest Expense was $-210 Mil. Its Operating Income was $295 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,075 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	294.645	/	-209.906
	=	1.40

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

Ramsay Health Care (OTCPK:RMSYF) 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 .

Ramsay Health Care Interest Coverage Related Terms

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

Ramsay Health Care (Ramsay Health Care) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Ramsay Health Care Ltd (OTCPK:RMSYF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RMYHY:USA RMY:Germany RHCPA.PFD:Australia RHC:Australia

Address

126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000

Website

https://www.ramsayhealth.com

Ramsay Health Care is one of the largest private healthcare providers in the world, with over 460 facilities across 10 countries. The key markets in which it operates are Australia, France, the U.K., and Sweden. It is the largest private hospital group in each of these markets except for the U.K. where it ranks fifth. Ramsay Sante, which operates the European regions other than the U.K., is a 52.5%-owned subsidiary of Ramsay Health Care. The company typically earns about 60% of consolidated earnings in Australia and 30% in France. Ramsay Health Care undertakes both private and publicly funded healthcare.