Pennant Group (Pennant Group) Interest Coverage : 4.34 (As of Mar. 2024)

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What is Pennant Group 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. Pennant Group's Operating Income for the three months ended in Mar. 2024 was $7.8 Mil. Pennant Group's Interest Expense for the three months ended in Mar. 2024 was $-1.8 Mil. Pennant Group's interest coverage for the quarter that ended in Mar. 2024 was 4.34. The higher the ratio, the stronger the company's financial strength is.

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

PNTG' s Interest Coverage Range Over the Past 10 Years
Min: 3.89 Med: 14.55 Max: No Debt
Current: 4.55

PNTG's Interest Coverage is ranked worse than
63.48% of 408 companies
in the Healthcare Providers & Services industry
Industry Median: 9.145 vs PNTG: 4.55

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

Pennant Group Interest Coverage Historical Data

The historical data trend for Pennant Group'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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Pennant Group Interest Coverage Chart

Pennant Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

13.83

15.27

3.89

5.16

4.26

Pennant Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															3.04	4.31	4.72	4.86	4.34

Competitive Comparison of Pennant Group's Interest Coverage

For the Medical Care Facilities subindustry, Pennant Group'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.

Pennant Group's Interest Coverage Distribution in the Healthcare Providers & Services Industry

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

* The bar in red indicates where Pennant Group's Interest Coverage falls into.

Pennant Group 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.

Pennant Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Pennant Group's Interest Expense was $-5.9 Mil. Its Operating Income was $25.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $312.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	25.239	/	-5.924
	=	4.26

Pennant Group's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Pennant Group's Interest Expense was $-1.8 Mil. Its Operating Income was $7.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $327.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	7.769	/	-1.792
	=	4.34

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

Pennant Group (NAS:PNTG) 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 .

Pennant Group Interest Coverage Related Terms

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

Pennant Group (Pennant Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Pennant Group Inc (NAS:PNTG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

1ZU:Germany

Address

1675 East Riverside Drive, Suite 150, Eagle, ID, USA, 83616

Website

https://www.pennantgroup.com

Pennant Group Inc is engaged in providing healthcare services to patients of all ages, including the growing senior population, in the United States. It operates in multiple lines of business including home health and hospice services which includes our home health, hospice, and home care businesses and Senior living which includes the company's assisted living, independent living, and memory care communities across Arizona, California, Colorado, Idaho, Iowa, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The majority of the revenue is generated from the Home Health and Hospice Services segment.

Executives

Jennifer Freeman	officer: Chief Financial Officer	C/O THE PENNANT GROUP, INC., 1675 E. RIVERSIDE DRIVE, SUITE 120, EAGLE ID 83616
Lynette Walbom	officer: Chief Financial Officer	1675 E. RIVERSIDE DR., SUITE 150, EAGLE ID 83616
John J Gochnour	officer: Chief Operating Officer	C/O THE PENNANT GROUP, INC., 1675 E. RIVERSIDE DRIVE, SUITE 100, EAGLE ID 83616
Joanne Stringfield	director	C/O THE PENNANT GROUP, INC., 1675 E. RIVERSIDE DRIVE, SUITE 120, EAGLE ID 83616
Barry M Smith	director	4800 N SCOTTSDALE RD, SUITE 5000, SCOTTSDALE AZ 85251
John G. Nackel	director	27101 PUERTA REAL, SUITE 450, MISSION VIEJO CA 92691
Christopher R. Christensen	director	27101 PUERTA REAL, SUITE 450, MISSION VIEJO CA 92691
Morris Gregory K Sr.	director	1675 E RIVERSIDE DR, SUITE 150, EAGLE ID 83616
Daniel H Walker	director, officer: See Remarks	C/O THE PENNANT GROUP, INC., 1675 E. RIVERSIDE DRIVE, STE 150, EAGLE ID 83616
Brent Guerisoli	officer: President	1675 E RIVERSIDE DR, SUITE 150, EAGLE ID 83616
Derek J Bunker	officer: See Remarks	C/O THE PENNANT GROUP, INC., 1675 E. RIVERSIDE DRIVE, STE 150, EAGLE ID 83616
Scott E Lamb	director	ICU MEDICAL, INC., 951 CALLE AMANECER, SAN CLEMENTE CA 92673
Roderic W Lewis	director
Covey Stephen M R	director
Ensign Group, Inc	10 percent owner	29222 RANCHO VIEJO RD., SUITE 127, SAN JUAN CAPISTRANO CA 92675