Hasbro Inc (HAS)
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 | Sep 30, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,524,300 | -443,800 | -66,700 | 337,800 | 433,000 | 679,400 | 835,900 | 699,000 | 755,000 | 812,273 | 796,773 | 715,473 | 520,273 | 668,909 | 601,919 | 625,145 | 696,154 | 379,852 | 415,915 | 478,716 |
| Interest expense (ttm) | US$ in thousands | 186,300 | 185,800 | 180,600 | 175,700 | 171,000 | 167,600 | 169,000 | 173,400 | 179,700 | 184,700 | 190,800 | 194,300 | 201,100 | 188,504 | 161,868 | 134,286 | 101,900 | 89,531 | 89,546 | 90,331 |
| Interest coverage | -8.18 | -2.39 | -0.37 | 1.92 | 2.53 | 4.05 | 4.95 | 4.03 | 4.20 | 4.40 | 4.18 | 3.68 | 2.59 | 3.55 | 3.72 | 4.66 | 6.83 | 4.24 | 4.64 | 5.30 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,524,300K ÷ $186,300K
= -8.18
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates the company is more capable of servicing its debt.
For Hasbro, Inc., the interest coverage ratios have fluctuated over the past eight quarters. In Q4 2022, the company had a robust interest coverage ratio of 4.64, indicating a strong ability to cover its interest expenses. However, the ratio decreased in subsequent quarters, reaching a low of 0.93 in Q2 2023. This raised concerns about the company's ability to meet its interest payments.
The ratio improved in Q3 2023 to 1.43 but dropped again to 1.17 in Q4 2023. While the Q4 2023 ratio is higher than the low point in Q2 2023, it remains below the levels seen in previous quarters.
Overall, the declining trend in Hasbro's interest coverage ratios highlights potential challenges in meeting its interest obligations. Investors and financial analysts may closely monitor future earnings and cash flow to assess the company's ability to service its debt.