JetBlue Airways Corp (JBLU)
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 | -230,000 | -120,000 | 175,000 | -173,000 | -298,000 | -460,000 | -413,000 | -153,000 | -80,000 | -415,000 | -1,117,000 | -1,674,000 | -1,714,000 | -1,033,000 | -245,000 | 420,000 | 832,000 | 821,000 | 635,000 | 234,000 |
| Interest expense (ttm) | US$ in thousands | 122,000 | 112,000 | 116,000 | 124,000 | 128,000 | 130,000 | 136,000 | 155,000 | 177,000 | 202,000 | 216,000 | 202,000 | 169,000 | 123,000 | 88,000 | 70,000 | 68,000 | 113,000 | 113,000 | 110,000 |
| Interest coverage | -1.89 | -1.07 | 1.51 | -1.40 | -2.33 | -3.54 | -3.04 | -0.99 | -0.45 | -2.05 | -5.17 | -8.29 | -10.14 | -8.40 | -2.78 | 6.00 | 12.24 | 7.27 | 5.62 | 2.13 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-230,000K ÷ $122,000K
= -1.89
Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations with its operating income. A ratio below 1 suggests that a company is not generating enough operating income to cover its interest expenses.
Based on the data provided for Jetblue Airways Corp, the interest coverage ratio has been volatile over the past eight quarters. In Q4 2023, the interest coverage ratio was at -0.27, indicating that the company's operating income was insufficient to cover its interest expenses. This suggests a potential financial strain for the company in meeting its debt obligations.
Despite the negative ratio in Q4 2023, Jetblue Airways Corp showed improvement in Q3 and Q2 2023, with ratios of 0.95 and 3.30 respectively. However, both ratios were still below 1, indicating a continued risk in servicing its interest payments.
Looking at the previous quarters, the company experienced severe difficulties in Q4 2022, Q3 2022, Q2 2022, and Q1 2022 with interest coverage ratios of -1.46, -3.09, -4.08, and -4.56 respectively. These consistently low ratios highlight a concerning trend of the company struggling to generate sufficient operating income to cover its interest expenses.
In conclusion, the data suggests that Jetblue Airways Corp has faced challenges in meeting its interest obligations in recent quarters. Investors and stakeholders should closely monitor the company's financial performance and management strategies to ensure sustainable debt management and financial stability.
Peer comparison
Dec 31, 2023