Cable One Inc (CABO)
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 | 527,287 | 498,163 | 451,038 | 454,315 | 305,544 |
| Interest expense | US$ in thousands | 170,147 | 137,713 | 113,449 | 73,607 | 71,729 |
| Interest coverage | 3.10 | 3.62 | 3.98 | 6.17 | 4.26 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $527,287K ÷ $170,147K
= 3.10
The interest coverage ratio for Cable One Inc has gradually decreased over the years, from 5.26 in 2020 to 2.85 in 2023. This indicates a declining ability of the company to cover its interest payments with operating profits. A lower interest coverage ratio may suggest that the company is facing challenges in generating enough earnings to meet its interest obligations, potentially signaling increased financial leverage or declining profitability. It is important for investors and creditors to monitor this trend closely as it could impact the company's financial health and ability to service its debt in the future.
Peer comparison
Dec 31, 2023