Six Flags Entertainment Corporation (FUN)
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 | 346,518 | 378,575 | 159,250 | -459,438 | 485,541 |
| Interest expense | US$ in thousands | 141,770 | 151,940 | 184,032 | 150,669 | 100,364 |
| Interest coverage | 2.44 | 2.49 | 0.87 | -3.05 | 4.84 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $346,518K ÷ $141,770K
= 2.44
The interest coverage ratio for Six Flags Entertainment Corporation has been fluctuating over the past five years. In 2023 and 2022, the company's interest coverage was 2.44 and 2.49, respectively, indicating that the company's operating income was able to cover its interest expenses approximately two to two and a half times. This suggests a relatively healthy ability to meet its interest obligations.
However, in 2021, the interest coverage ratio dropped to 0.87, signaling a tighter situation where the company's operating income was just enough to cover its interest expenses. This may raise concerns about the company's ability to service its debt efficiently.
In 2020, the interest coverage ratio was significantly negative at -3.05, indicating that the company's operating income was insufficient to cover its interest expenses. This implies a potential financial distress situation where the company may struggle to meet its interest payments.
On a positive note, in 2019, the interest coverage ratio was 4.84, showing a strong ability to cover interest expenses nearly five times using operating income. Overall, the fluctuating trend in Six Flags Entertainment Corporation's interest coverage ratio highlights the importance of closely monitoring the company's financial performance and debt servicing capabilities.
Peer comparison
Dec 31, 2023