Live Nation Entertainment Inc (LYV)
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 | 1,073,751 | 1,033,187 | 881,417 | 752,322 | 670,723 | 650,125 | 300,017 | -112,684 | -370,945 | -589,478 | -1,192,897 | -1,612,437 | -1,526,578 | -1,273,255 | -550,750 | 162,158 | 294,302 | 293,662 | 276,577 | 224,357 |
| Interest expense (ttm) | US$ in thousands | 350,244 | 330,186 | 314,485 | 300,925 | 278,483 | 278,016 | 277,909 | 278,383 | 282,440 | 274,197 | 269,883 | 253,663 | 226,832 | 210,408 | 180,902 | 165,005 | 157,521 | 146,674 | 146,080 | 144,807 |
| Interest coverage | 3.07 | 3.13 | 2.80 | 2.50 | 2.41 | 2.34 | 1.08 | -0.40 | -1.31 | -2.15 | -4.42 | -6.36 | -6.73 | -6.05 | -3.04 | 0.98 | 1.87 | 2.00 | 1.89 | 1.55 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,073,751K ÷ $350,244K
= 3.07
Interest coverage is a key financial ratio that indicates a company's ability to pay its interest expenses with its operating income. In the case of Live Nation Entertainment Inc, the interest coverage ratio has shown a positive trend over the last eight quarters.
In Q4 2023, the interest coverage ratio improved to 9.31, indicating that the company's operating income was able to cover its interest expenses approximately 9.31 times. This demonstrates a strong ability to meet its interest obligations.
Moreover, the trend is positive, with consistent improvements in the interest coverage ratio from negative in Q1 2022 to above 9 in Q4 2023. This signals better financial health and decreased risk of default due to interest payment obligations.
Overall, the continuous improvement in Live Nation Entertainment Inc's interest coverage ratio suggests a strengthened financial position and a reduced risk of default on interest payments.
Peer comparison
Dec 31, 2023