Live Nation Entertainment Inc (LYV)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,092,961 | 1,249,383 | 1,175,538 | 1,071,478 | 1,141,289 | 1,187,288 | 1,031,159 | 831,849 | 670,723 | 536,375 | 211,937 | -167,253 | -390,716 | -613,344 | -1,222,567 | -1,688,555 | -1,630,205 | -1,335,738 | -588,137 | 172,856 |
| Interest expense (ttm) | US$ in thousands | 325,974 | 341,441 | 339,695 | 341,720 | 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 |
| Interest coverage | 3.35 | 3.66 | 3.46 | 3.14 | 3.26 | 3.60 | 3.28 | 2.76 | 2.41 | 1.93 | 0.76 | -0.60 | -1.38 | -2.24 | -4.53 | -6.66 | -7.19 | -6.35 | -3.25 | 1.05 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,092,961K ÷ $325,974K
= 3.35
The interest coverage ratio of Live Nation Entertainment Inc experienced a period of significant decline from negative figures to positive values over the timeline from March 31, 2020, to December 31, 2024. During the early periods, the company had a low interest coverage ratio, which indicates that its earnings before interest and taxes were not sufficient to cover its interest expenses. However, starting from June 30, 2022, the interest coverage improved and continued to increase steadily, indicating the company's improved ability to meet its interest obligations from its operating income.
The interest coverage ratio turned positive from June 30, 2022, and reached a relatively stable level above 3 by the end of December 31, 2024. This positive trend suggests that Live Nation Entertainment Inc became more capable of servicing its interest payments out of its earnings. An interest coverage ratio above 1 indicates that the company's operating income is sufficient to cover its interest expenses, and the increasing trend signifies a healthier financial position.
Overall, the progression in Live Nation's interest coverage ratio from negative to positive values demonstrates an improvement in its ability to meet its interest obligations, indicating a potentially enhanced financial stability and reduced risk of defaulting on its debts.
Peer comparison
Dec 31, 2024