JetBlue Airways Corp (JBLU)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -230,000 | -298,000 | -80,000 | -1,714,000 | 800,000 |
| Interest expense | US$ in thousands | 121,000 | 127,000 | 176,000 | 168,000 | 68,000 |
| Interest coverage | -1.90 | -2.35 | -0.45 | -10.20 | 11.76 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-230,000K ÷ $121,000K
= -1.90
The interest coverage ratio for Jetblue Airways Corp has fluctuated significantly over the past five years. In 2019, the company had a healthy interest coverage ratio of 12.52, indicating that it was generating more than enough operating income to cover its interest expenses. However, this ratio declined sharply in the following years, with negative values recorded in 2020, 2021, and 2022. This suggests that the company's operating income was insufficient to cover its interest expenses during those periods, raising concerns about its financial health and ability to meet debt obligations. The negative values indicate that the company was facing challenges in servicing its debt with its current level of earnings. It is crucial for Jetblue Airways Corp to closely monitor and address its interest coverage ratio to ensure its long-term financial stability and solvency.
Peer comparison
Dec 31, 2023