Fox Corp Class B (FOX)
Interest coverage
| Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,170,000 | 2,508,000 | 1,517,000 | 1,791,000 | 2,071,000 | 2,008,000 | 2,452,000 | 1,925,000 | 2,043,000 | 4,582,000 | 4,968,000 | 5,374,000 | 5,899,000 | 4,514,000 | 3,875,000 | 3,973,000 | 3,182,000 | 4,288,000 | 4,843,000 | 4,378,000 |
| Interest expense (ttm) | US$ in thousands | 356,000 | 396,000 | 383,000 | 353,000 | 349,000 | 352,000 | 358,000 | 367,000 | 377,000 | 386,000 | 392,000 | 393,000 | 395,000 | 396,000 | 387,000 | 378,000 | 369,000 | 360,000 | 352,000 | 277,000 |
| Interest coverage | 6.10 | 6.33 | 3.96 | 5.07 | 5.93 | 5.70 | 6.85 | 5.25 | 5.42 | 11.87 | 12.67 | 13.67 | 14.93 | 11.40 | 10.01 | 10.51 | 8.62 | 11.91 | 13.76 | 15.81 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,170,000K ÷ $356,000K
= 6.10
The interest coverage ratio for Fox Corp Class B has shown some fluctuations over the past few quarters. The ratio indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio is generally considered favorable as it suggests the company is more capable of servicing its debt.
Looking at the trend, the interest coverage ratio ranged from a low of 3.96 in December 2023 to a high of 15.81 in September 2019. It peaked at exceptionally high levels in March 2022, December 2021, and September 2021, indicating a very strong ability to cover interest expenses during those periods. However, there was a noticeable decline in the ratio in December 2023, followed by a rebound in the recent quarters.
Overall, the interest coverage ratio for Fox Corp Class B has demonstrated solid performance, with the company generally maintaining a healthy ability to cover its interest payments with operating income. However, management should continue to monitor and manage the company's debt levels and interest expenses to ensure the ratio remains at a sustainable level.
Peer comparison
Jun 30, 2024