Docgo(Dcgo) Financials: Interest Coverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - interest coverage
This chart shows the historical trend of interest coverage for DCGO compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Interest Coverage
Definition: Interest coverage tells you how easily the company can pay interest on its debt using operating profits. It’s like asking: “Can the company comfortably make its loan payments, or is it barely scraping by?” The higher the ratio, the safer. A very low ratio means debt payments may strain the business, especially if profits drop.
Interpretation:
• In '2021', DCGO's interest coverage was 26.94, indicating the firm's ability to meet its interest obligations. Industry average for Medical/Nursing Services in '2021' stood at -0.36.
• In '2024', DCGO's interest coverage was 15.38, indicating the firm's ability to meet its interest obligations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2024' stood at 0.28. Industry average increased by 0.64 compared to previous year.
Overall, DCGO's interest coverage has been volatile but showed a downward trend over the past 2 years.
Formula: Interest Coverage = EBIT / Interest Expense
Good Range: Minimum 3-5 desirable; below 1 is risky.