Cable One Inc (CABO)
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 | 527,287 | 345,968 | 371,305 | 375,990 | 498,163 | 614,939 | 581,831 | 584,217 | 451,038 | 500,270 | 503,853 | 469,733 | 454,315 | 376,034 | 358,387 | 330,505 | 305,544 | 286,445 | 269,552 | 276,620 |
| Interest expense (ttm) | US$ in thousands | 170,146 | 166,929 | 159,934 | 148,796 | 137,713 | 128,975 | 123,081 | 119,948 | 113,449 | 103,781 | 90,846 | 78,514 | 73,607 | 71,887 | 70,406 | 72,307 | 71,729 | 67,970 | 67,351 | 63,788 |
| Interest coverage | 3.10 | 2.07 | 2.32 | 2.53 | 3.62 | 4.77 | 4.73 | 4.87 | 3.98 | 4.82 | 5.55 | 5.98 | 6.17 | 5.23 | 5.09 | 4.57 | 4.26 | 4.21 | 4.00 | 4.34 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $527,287K ÷ $170,146K
= 3.10
Interest coverage ratio is a financial metric used to assess a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense for a specific period.
Analyzing the interest coverage ratios of Cable One Inc from Q4 2022 to Q4 2023 shows a declining trend. The interest coverage ratio decreased from 3.77 in Q4 2022 to 2.85 in Q4 2023. This indicates that the company's ability to cover its interest payments with its operating earnings has weakened over the past year.
Furthermore, the downward trend in the interest coverage ratio from Q4 2022 to Q4 2023 may raise concerns about Cable One Inc's financial health and ability to service its debt obligations. A lower interest coverage ratio suggests a higher risk of default on interest payments.
It is important for investors and stakeholders to closely monitor Cable One Inc's interest coverage ratio and assess the company's overall financial stability and leverage levels. The declining trend in the interest coverage ratio should prompt further analysis into the company's financial performance and debt management strategies to ensure sustainable and healthy operations in the future.
Peer comparison
Dec 31, 2023