Fox Corp Class A (FOXA)
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 A has fluctuated over the observed period. The ratio measures the company's ability to meet its interest payment obligations with its operating income. A higher interest coverage ratio indicates a more comfortable financial position in servicing its debt.
Analyzing the data, we can see that the interest coverage ratio ranged from a low of 3.96 in December 2023 to a high of 15.81 in September 2019. The ratio showed a declining trend from the peak in March 2022, where it reached 13.67, to the low point in December 2023. This decrease could signal potential concerns about the company's ability to cover its interest expenses with its operating income during that period.
However, it's worth noting that since December 2023, the interest coverage ratio has improved, reaching 6.33 in March 2024 and 6.10 in June 2024. This uptrend suggests a better ability to service debt obligations with operating income compared to the previous period. Overall, a stable or increasing interest coverage ratio indicates a healthier financial position for Fox Corp Class A in managing its debt obligations.
Peer comparison
Jun 30, 2024