Frontier Communications Parent Inc (FYBR)

Interest coverage

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 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 770,000 748,000 897,000 1,038,000 1,091,000 497,000 127,000 75,000 154,000 743,000 705,000 643,000 521,000 267,000 -5,123,000 -4,987,000 -5,024,000 -5,081,000 734,000 831,000
Interest expense (ttm) US$ in thousands 653,000 596,000 561,000 530,000 492,000 461,000 417,000 388,000 -82,000 185,000 254,000 548,000 1,306,000 1,316,000 1,539,000 1,535,000 1,532,000 1,539,000 1,541,000 1,536,000
Interest coverage 1.18 1.26 1.60 1.96 2.22 1.08 0.30 0.19 4.02 2.78 1.17 0.40 0.20 -3.33 -3.25 -3.28 -3.30 0.48 0.54

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $770,000K ÷ $653,000K
= 1.18

Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations from its earnings. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio is indicative of a company's stronger ability to cover its interest payments.

Based on the data provided for Frontier Communications Parent Inc, the interest coverage ratio fluctuated over the periods analyzed. In some quarters, such as June 30, 2023, and March 31, 2023, the interest coverage ratio was relatively high at 1.60 and 1.96, respectively. This suggests that the company's earnings were sufficient to cover its interest obligations comfortably during those periods.

However, there were instances, such as March 31, 2020, and December 31, 2019, where the interest coverage ratio was negative, indicating that the company's earnings were not enough to cover its interest expenses during those periods. Negative interest coverage ratios are concerning as they suggest financial distress and an inability to meet debt obligations.

Overall, the trend in Frontier Communications Parent Inc's interest coverage ratio indicates variability in its ability to cover interest payments over time. Investors and lenders should closely monitor these fluctuations to assess the company's financial health and risk levels.


Peer comparison

Dec 31, 2023