AMC Networks Inc (AMCX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 462,773 | 100,376 | 474,062 | 523,980 | 616,754 |
| Interest expense | US$ in thousands | 152,703 | 133,762 | 129,073 | 138,610 | 157,798 |
| Interest coverage | 3.03 | 0.75 | 3.67 | 3.78 | 3.91 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $462,773K ÷ $152,703K
= 3.03
The interest coverage ratio for AMC Networks Inc has exhibited a declining trend over the past five years, with values decreasing from 5.81 in 2019 to 4.43 in 2023. This indicates that the company's ability to cover its interest expenses with its earnings has been gradually weakening. A higher interest coverage ratio is generally preferred as it signifies a better ability to meet interest obligations. The declining trend suggests that AMC Networks Inc may be experiencing challenges in generating sufficient earnings to comfortably cover its interest expenses, potentially leading to increased financial risk. It is important for stakeholders to closely monitor this trend and assess the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2023