Six Flags Entertainment Corporation (FUN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 323,267 | 323,564 | 370,435 | 348,271 | 356,561 | 386,930 | 437,444 | 499,024 | 531,621 | 519,467 | 489,374 | 324,226 | 307,817 | 159,143 | -223,828 | -307,345 | -302,095 | -171,774 | 227,615 | 472,418 |
| Interest expense (ttm) | US$ in thousands | 235,345 | 192,628 | 147,011 | 144,337 | 141,770 | 142,174 | 143,098 | 145,946 | 151,940 | 163,047 | 172,268 | 178,059 | 184,032 | 182,699 | 176,805 | 167,546 | 150,669 | 132,891 | 120,482 | 106,663 |
| Interest coverage | 1.37 | 1.68 | 2.52 | 2.41 | 2.52 | 2.72 | 3.06 | 3.42 | 3.50 | 3.19 | 2.84 | 1.82 | 1.67 | 0.87 | -1.27 | -1.83 | -2.01 | -1.29 | 1.89 | 4.43 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $323,267K ÷ $235,345K
= 1.37
Six Flags Entertainment Corporation's interest coverage ratio has fluctuated over the periods provided, indicating the company's ability to cover its interest payments with its operating income. An interest coverage ratio below 1 suggests that the company is not generating enough operating income to meet its interest obligations, which raises concerns about its financial stability.
From March 31, 2020, to June 30, 2021, Six Flags faced challenges with its interest coverage ratio falling below 1, indicating potential financial stress. However, from September 30, 2021, onwards, the company showed signs of improvement as the interest coverage ratio started to increase, surpassing the critical threshold of 1.
As of December 31, 2024, Six Flags Entertainment Corporation's interest coverage ratio stood at 1.37, reflecting a slight improvement from the earlier periods. While the company has made progress in managing its interest obligations, continuous monitoring is necessary to ensure sustained financial health and stability.
Peer comparison
Dec 31, 2024