Frontier Communications Parent Inc (FYBR)
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 | 383,668 | 681,000 | 747,000 | 827,000 | 770,000 | 748,000 | 897,000 | 1,038,000 | 1,091,000 | 1,132,000 | 1,049,000 | 5,252,000 | 5,290,000 | 5,029,000 | 4,907,000 | 338,000 | 276,000 | 376,000 | 267,000 | -5,123,000 |
| Interest expense (ttm) | US$ in thousands | 804,000 | 794,000 | 761,000 | 711,000 | 653,000 | 596,000 | 561,000 | 530,000 | 492,000 | 461,000 | 416,000 | 389,000 | 375,000 | 368,000 | 399,000 | 468,000 | 762,000 | 1,808,000 | 2,069,000 | 2,292,000 |
| Interest coverage | 0.48 | 0.86 | 0.98 | 1.16 | 1.18 | 1.26 | 1.60 | 1.96 | 2.22 | 2.46 | 2.52 | 13.50 | 14.11 | 13.67 | 12.30 | 0.72 | 0.36 | 0.21 | 0.13 | -2.24 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $383,668K ÷ $804,000K
= 0.48
Frontier Communications Parent Inc's interest coverage ratio, as indicated by the data, has shown a fluctuating trend over the observed periods. The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses, and it reflects the company's ability to cover its interest payments with its operating profits.
From March 31, 2020, to June 30, 2021, the company experienced significant challenges with negative interest coverage, indicating that its EBIT was insufficient to cover its interest expenses during these periods. However, starting from June 30, 2021, there was a notable improvement in the interest coverage ratio, reaching its peak in December 31, 2021, at 14.11. This suggests that the company's operating profits more than adequately covered its interest obligations during this period.
Subsequently, from March 31, 2022, to December 31, 2024, the interest coverage ratio declined gradually, indicating a decreased capacity to cover interest expenses with operating profits. Although the ratios remained above 1, indicating that the company could still cover its interest payments, the decreasing trend may raise concerns regarding the company's ability to service its debt obligations in the long term.
Overall, it is essential for Frontier Communications Parent Inc to closely monitor its interest coverage ratio to ensure it maintains a healthy balance between operating profits and interest expenses, thereby sustaining financial stability and meeting its debt obligations.
Peer comparison
Dec 31, 2024