Fox Corp Class A (FOXA)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 389,000 | 2,071,000 | 2,043,000 | 3,262,000 | 1,770,000 |
| Interest expense | US$ in thousands | 216,000 | 349,000 | 377,000 | 395,000 | 369,000 |
| Interest coverage | 1.80 | 5.93 | 5.42 | 8.26 | 4.80 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $389,000K ÷ $216,000K
= 1.80
Fox Corp Class A interest coverage has fluctuated over the past five years. The interest coverage ratio decreased to 1.80 in 2024 from higher levels in the previous years, indicating that the company's ability to cover its interest expenses with its operating income has weakened. This decline may raise concerns about the company's ability to meet its interest payment obligations. It is important for stakeholders to monitor this ratio closely to ensure the company's financial stability and solvency.
Peer comparison
Jun 30, 2024
Company name
Symbol
Interest coverage
Fox Corp Class A
FOXA
1.80
Fox Corp Class B
FOX
1.80
Nexstar Broadcasting Group Inc
NXST
1.58
Paramount Global Class B
PARA
-0.05
Tegna Inc
TGNA
4.51