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