Civitas Solutions (Civitas Solutions) Interest Coverage : 2.05 (As of Dec. 2018)

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What is Civitas Solutions 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. Civitas Solutions's Operating Income for the three months ended in Dec. 2018 was $21 Mil. Civitas Solutions's Interest Expense for the three months ended in Dec. 2018 was $-10 Mil. Civitas Solutions's interest coverage for the quarter that ended in Dec. 2018 was 2.05. The higher the ratio, the stronger the company's financial strength is.

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

CIVI's Interest Coverage is not ranked ^*
in the Healthcare Providers & Services industry.
Industry Median: 9
* Ranked among companies with meaningful Interest Coverage only.

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

Civitas Solutions Interest Coverage Historical Data

The historical data trend for Civitas Solutions'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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Civitas Solutions Interest Coverage Chart

Civitas Solutions Annual Data

Trend

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Interest Coverage

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0.73

1.67

1.69

2.15

1.40

Civitas Solutions Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
Interest Coverage	Get a 7-Day Free Trial															1.42	0.67	2.40	1.06	2.05

Competitive Comparison of Civitas Solutions's Interest Coverage

For the Medical Care Facilities subindustry, Civitas Solutions'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.

Civitas Solutions's Interest Coverage Distribution in the Healthcare Providers & Services Industry

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

* The bar in red indicates where Civitas Solutions's Interest Coverage falls into.

Civitas Solutions 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.

Civitas Solutions's Interest Coverage for the fiscal year that ended in Sep. 2018 is calculated as

Here, for the fiscal year that ended in Sep. 2018, Civitas Solutions's Interest Expense was $-39 Mil. Its Operating Income was $54 Mil. And its Long-Term Debt & Capital Lease Obligation was $699 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2018 )	/	Interest Expense (A: Sep. 2018 )
	=	-1	*	54.37	/	-38.792
	=	1.40

Civitas Solutions's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the three months ended in Dec. 2018, Civitas Solutions's Interest Expense was $-10 Mil. Its Operating Income was $21 Mil. And its Long-Term Debt & Capital Lease Obligation was $698 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2018 )	/	Interest Expense (Q: Dec. 2018 )
	=	-1	*	20.872	/	-10.166
	=	2.05

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

Civitas Solutions (NYSE:CIVI) 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 .

Civitas Solutions Interest Coverage Related Terms

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

Civitas Solutions (Civitas Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Civitas Solutions Inc (NYSE:CIVI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

313 Congress Street, 6th Floor, Boston, MA, USA, 02210

Website

http://www.civitas-solutions.com

Civitas Solutions Inc provides health services to people with intellectual, developmental, physical, or behavioral disabilities and other special needs. Its revenue is generated exclusively in the United States. Civitas operates in two segments: human services and post-acute specialty rehabilitation services, or SRS. The human services segment contributes the vast majority of revenue and provides services to people with disabilities, at-risk youth, and the elderly. Its programs for people with intellectual or developmental disabilities provide residential support, case management, and vocational services. The SRS segment provides rehabilitation and transitional living services to people who have experienced brain or spinal injuries or other severe illnesses or injuries.

Executives

Daniel S Oconnell	10 percent owner	C/O VESTAR CAPITAL PARTNERS, 245 PARK AVE 41ST FL, NEW YORK NY 10167
Vestar Managers V Ltd.	10 percent owner	245 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10167
Vestar Associates V, L.p.	10 percent owner	245 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10167
Greg Roth	director	ONE PARK PLAZA, NASHVILLE TN 37203
Pamela F Lenehan	director	C/O AVID TECHNOLOGY, INC., ONE PARK WEST, TEWKSBURY MA 01876
Patrick M. Gray	director	C/O CIVITAS SOLUTIONS, INC. 313 CONGRESS STREET, 6TH FLOOR BOSTON MA 02210
Guy P Sansone	director	C/O MEDNAX, 1301 CONCORD TERRACE, SUNRISE FL 33323
Mary Ann Tocio	director	C/O BRIGHT HORIZONS FAMILY SOLUTIONS, 2 WELLS AVENUE, NEWTON MA 02459
Vestar Capital Partners V L P	10 percent owner	245 PARK AVE 41ST FL, NEW YORK NY 10167
Robert L. Rosner	director	C/O TRITON INTERNATIONAL LIMITED, 100 MANHATTANVILLE ROAD, PURCHASE NY 10577
Edward M Murphy	director, officer: Executive Chair	C/O CIVITAS SOLUTIONS, INC. 313 CONGRESS STREET, 6TH FLOOR BOSTON MA 02210
Kevin A Mundt	director	C/O VESTAR CAPITAL PARTNERS, 245 PARK AVENUE, 41ST FL, NEW YORK NY 10167