United Therapeutics (United Therapeutics) Interest Coverage : 17.23 (As of Dec. 2023)

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What is United Therapeutics 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. United Therapeutics's Operating Income for the three months ended in Dec. 2023 was $260 Mil. United Therapeutics's Interest Expense for the three months ended in Dec. 2023 was $-15 Mil. United Therapeutics's interest coverage for the quarter that ended in Dec. 2023 was 17.23. The higher the ratio, the stronger the company's financial strength is.

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

UTHR' s Interest Coverage Range Over the Past 10 Years
Min: 19.98 Med: 30.61 Max: 272.23
Current: 19.98

UTHR's Interest Coverage is ranked worse than
67.98% of 356 companies
in the Biotechnology industry
Industry Median: 135.52 vs UTHR: 19.98

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

United Therapeutics Interest Coverage Historical Data

The historical data trend for United Therapeutics'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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United Therapeutics Interest Coverage Chart

United Therapeutics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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25.26

29.89

30.24

19.98

United Therapeutics Quarterly Data
	Mar19	Jun19	Sep19	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															14.28	20.61	21.18	20.96	17.23

Competitive Comparison of United Therapeutics's Interest Coverage

For the Biotechnology subindustry, United Therapeutics'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.

United Therapeutics's Interest Coverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, United Therapeutics's Interest Coverage distribution charts can be found below:

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

United Therapeutics 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.

United Therapeutics'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, United Therapeutics's Interest Expense was $-59 Mil. Its Operating Income was $1,185 Mil. And its Long-Term Debt & Capital Lease Obligation was $300 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1184.9	/	-59.3
	=	19.98

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

Here, for the three months ended in Dec. 2023, United Therapeutics's Interest Expense was $-15 Mil. Its Operating Income was $260 Mil. And its Long-Term Debt & Capital Lease Obligation was $300 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	260.1	/	-15.1
	=	17.23

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

United Therapeutics (NAS:UTHR) 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 .

United Therapeutics Interest Coverage Related Terms

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

United Therapeutics (United Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » United Therapeutics Corp (NAS:UTHR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

UTH:Germany

Address

1040 Spring Street, Silver Spring, MD, USA, 20910

Website

https://www.unither.com

United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.

Executives

Paul A Mahon	officer: EVP & General Counsel
Nilda Mesa	director	C/O UNITED THERAPEUTICS CORPORATION, 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Causey	director
Martine A Rothblatt	director, officer: Chief Executive Officer
Louis W Sullivan	director
Judy D. Olian	director	2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067
Michael Benkowitz	officer: President and COO	C/O UNITED THERAPEUTICS CORP, 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Patusky	director
Raymond Dwek	director
Linda Maxwell	director	1040 SPRING STREET, SILVER SPRING NC 27709
Tommy G Thompson	director	7711 CARONDELET, ST. LOUIS MO 63105
Katherine J Klein	director	STEINBERG HALL-DIETRICH HALL, 3620 LOCUST WALK, PHILADELPHIA PA 19104
Richard Giltner	director	C/O UNITED THERAPEUTICS CORPORTION, 1735 CONNECTICUT AVE. NW, WASHINGTON DC 20009
Roger Jeffs	director, officer: President and COO
David Zaccardelli	officer: EVP & Chief Operating Officer	300 TRI STATE INTERNATIONAL, SUITE 272, LINCOLNSHIRE IL 60069