Six Flags Entertainment Corporation (FUN)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 346,518 | 378,575 | 159,250 | -459,438 |
| Interest expense | US$ in thousands | 234,770 | 141,770 | 151,940 | 184,032 | 150,669 |
| Interest coverage | 0.00 | 2.44 | 2.49 | 0.87 | -3.05 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $234,770K
= 0.00
Based on the provided data, the interest coverage ratio of Six Flags Entertainment Corporation has shown significant fluctuations over the past five years.
As of December 31, 2020, the interest coverage ratio was -3.05, indicating that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health and ability to meet debt obligations.
However, by December 31, 2021, the interest coverage ratio improved to 0.87, although it was still below 1, suggesting that the company's earnings were barely enough to cover its interest payments.
In the following years, there was a notable improvement in the interest coverage ratio, with values of 2.49 as of December 31, 2022, and 2.44 as of December 31, 2023, indicating that the company's operating income was more comfortably covering its interest expenses.
Surprisingly, by December 31, 2024, the interest coverage ratio dropped to 0.00, which might raise concerns about the company's ability to meet its interest obligations based on the available information.
Overall, the trend in the interest coverage ratio of Six Flags Entertainment Corporation shows a mix of fluctuations and improvements, highlighting the importance of closely monitoring the company's financial performance and its ability to manage debt effectively.
Peer comparison
Dec 31, 2024