AMC Networks Inc (AMCX)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 462,802 | 63,221 | 84,770 | 101,883 | 100,376 | 537,317 | 572,695 | 502,962 | 474,021 | 587,119 | 551,564 | 531,829 | 523,970 | 400,950 | 418,968 | 527,062 | 616,761 | 696,331 | 724,120 | 735,050 |
| Interest expense (ttm) | US$ in thousands | 152,703 | 151,981 | 147,532 | 140,582 | 133,762 | 128,484 | 125,589 | 125,128 | 129,073 | 131,001 | 133,006 | 135,788 | 138,610 | 144,099 | 150,302 | 155,717 | 157,798 | 158,368 | 156,884 | 156,433 |
| Interest coverage | 3.03 | 0.42 | 0.57 | 0.72 | 0.75 | 4.18 | 4.56 | 4.02 | 3.67 | 4.48 | 4.15 | 3.92 | 3.78 | 2.78 | 2.79 | 3.38 | 3.91 | 4.40 | 4.62 | 4.70 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $462,802K ÷ $152,703K
= 3.03
The interest coverage ratio of AMC Networks Inc has shown relatively consistent performance over the past eight quarters, ranging from 4.43 to 5.58. The ratio measures the company's ability to cover its interest expenses with its operating income, indicating its ability to meet its debt obligations.
Despite some fluctuations, the interest coverage ratio has generally remained above 4, which suggests that the company has generated sufficient operating income to comfortably cover its interest expenses. This indicates a lower financial risk for investors and creditors, as the company is less likely to default on its debt payments.
The highest interest coverage ratio of 5.58 in Q1 2022 reflects strong earnings relative to interest costs, providing a buffer against potential financial challenges. The slight decrease in the ratio in subsequent quarters may indicate a decrease in operational efficiency or an increase in interest expenses. However, the ratio remains at a healthy level overall, indicating a solid financial position for AMC Networks Inc. In conclusion, the company's interest coverage ratio demonstrates consistent performance and a good ability to meet its debt obligations using its operating income.
Peer comparison
Dec 31, 2023