MultiPlan (MultiPlan) Interest Coverage : 0.49 (As of Dec. 2023)

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What is MultiPlan 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. MultiPlan's Operating Income for the three months ended in Dec. 2023 was $40.8 Mil. MultiPlan's Interest Expense for the three months ended in Dec. 2023 was $-83.0 Mil. MultiPlan's interest coverage for the quarter that ended in Dec. 2023 was 0.49. 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. MultiPlan Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

MPLN' s Interest Coverage Range Over the Past 10 Years
Min: 0.51 Med: 1.1 Max: 1.44
Current: 0.51

MPLN's Interest Coverage is ranked worse than
95.07% of 406 companies
in the Healthcare Providers & Services industry
Industry Median: 8.695 vs MPLN: 0.51

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

MultiPlan Interest Coverage Historical Data

The historical data trend for MultiPlan'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.

* Premium members only.

MultiPlan Interest Coverage Chart

MultiPlan Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

0.98

1.44

1.10

0.51

MultiPlan Quarterly Data
	Dec18	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial													0.63	0.57	0.50	0.47	0.49

Competitive Comparison of MultiPlan's Interest Coverage

For the Health Information Services subindustry, MultiPlan'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.

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

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

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

MultiPlan 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.

MultiPlan'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, MultiPlan's Interest Expense was $-333.2 Mil. Its Operating Income was $170.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,549.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	170.046	/	-333.208
	=	0.51

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

Here, for the three months ended in Dec. 2023, MultiPlan's Interest Expense was $-83.0 Mil. Its Operating Income was $40.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,549.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	40.771	/	-83.005
	=	0.49

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

MultiPlan (NYSE:MPLN) 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 .

MultiPlan Interest Coverage Related Terms

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

MultiPlan (MultiPlan) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » MultiPlan Corp (NYSE:MPLN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

115 Fifth Avenue, New York, NY, USA, 10003

Website

https://www.multiplan.us

MultiPlan Corp is a provider of data analytics and technology-enabled solutions designed to bring affordability, efficiency, and fairness to the U.S. healthcare industry. The company interprets clients' needs and customizes solutions that combine its payment integrity, network-based, and analytics-based services. The Company's focus is being a value-added provider of data analytics and technology-enabled end-to-end cost management, payment and revenue integrity solutions to the U.S. healthcare industry.

Executives

John Michael Prince	director	115 FIFTH AVE., NEW YORK NY 10003
Nutter Carol	officer: SVP, Chief People Officer	115 FIFTH AVE., NEW YORK NY 10003
Anthony Jr Colaluca	director	MULTIPLAN CORPORATION, 115 FIFTH AVENUE, NEW YORK NY 10003
Mark Tabak	director, officer: Chief Executive Officer	115 FIFTH AVENUE, NEW YORK NY 10003
Michael Kim	officer: See Remarks	POLARIS PARENT CORP, 115 FIFTH AVENUE, NEW YORK NY 10003
Michael K. Attal	director	425 PARK AVENUE, 30TH FLOOR, NEW YORK NY 10022
James M Head	officer: EVP & Chief Financial Officer	3001 COLORADO BLVD, DENTON TX 76210
Julie D Klapstein	director	1239 FRUIT COVE ROAD NORTH, JACKSONVILLE FL 32259
C Martin Harris	director
H&f Corporate Investors Viii, Ltd.	10 percent owner	415 MISSION STREET, SUITE 5700, SAN FRANCISCO CA 94105
Music Investments Gp, Llc	10 percent owner	C/O HELLMAN & FRIEDMAN, ONE MARTIME PLAZA, 12TH FLOOR, SAN FRANCISCO CA 94111
Music Investments, L.p.	10 percent owner	C/O HELLMAN & FRIEDMAN, ONE MARTIME PLAZA, 12TH FLOOR, SAN FRANCISCO CA 94111
Glenn R August	director	C/O OHA - 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036
Paul Galant	officer: President, New Markets	88 WEST PLUMERIA DRIVE, SAN JOSE CA 95134
Michael Stuart Klein	director, 10 percent owner, officer: Chief Executive Officer	C/O DAVIS POLK & WARDWELL, 450 LEXINGTON AVENUE, NEW YORK NY 10017