JetBlue Airways Corp (JBLU)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -547,000 | -124,000 | -271,000 | -88,000 | -1,727,000 |
| Interest expense | US$ in thousands | 350,000 | 210,000 | 166,000 | 227,000 | 179,000 |
| Interest coverage | -1.56 | -0.59 | -1.63 | -0.39 | -9.65 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-547,000K ÷ $350,000K
= -1.56
JetBlue Airways Corp's interest coverage has been negative for the past five years, indicating that the company's operating income is insufficient to cover its interest expenses. The trend shows a significant decline from -9.65 in 2020 to -1.56 in 2024. This suggests a worsening ability to meet interest obligations over the years, raising concerns about the company's financial health and its ability to handle debt obligations. Investors and creditors may view this as a red flag, highlighting the importance of closely monitoring JetBlue's financial performance and debt management strategies.
Peer comparison
Dec 31, 2024