Madison Square Garden Sports Corp (MSGS)

Based on the solvency ratios provided for Madison Square Garden Sports Corp, we observe the following trends:

1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. The trend shows a decrease from 0.28 in 2020 to 0.20 in 2024, suggesting an improvement in the company's ability to cover its assets with less reliance on debt over the years.

2. Debt-to-capital ratio: This ratio reflects the percentage of the company's capital structure funded by debt. The significant increase from 2.45 in 2020 to 31.65 in 2024 implies a higher reliance on debt for capital financing, which could potentially pose solvency risks in terms of debt repayments.

3. Debt-to-equity ratio: Unfortunately, the data for this ratio is not provided for analysis. The absence of this ratio limits a comprehensive assessment of the company's leverage position.

4. Financial leverage ratio: Similar to the debt-to-equity ratio, there is no data provided for the financial leverage ratio. Without this ratio, a thorough evaluation of the company's leverage capacity and potential risks associated with its capital structure remains incomplete.

In conclusion, while the debt-to-assets ratio indicates an improving trend in terms of asset coverage by debt, the significant rise in the debt-to-capital ratio raises concerns about the company's increasing reliance on debt for financing over the years. Additional metrics such as the debt-to-equity ratio and financial leverage ratio would be essential for a more holistic assessment of Madison Square Garden Sports Corp's solvency position.

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Coverage ratios

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.

Madison Square Garden Sports Corp's interest coverage has shown varying trends over the past five years. In Jun 30, 2024, the interest coverage ratio was 5.29, slightly higher than the ratio of 5.02 in Jun 30, 2023. This suggests the company's ability to cover its interest expenses improved slightly year over year.

In Jun 30, 2022, the interest coverage ratio was notably higher at 7.49, indicating even better coverage of interest expenses compared to the previous years. However, in Jun 30, 2021, the interest coverage ratio dropped to -7.27, which may raise concerns as it implies the company's operating income was not sufficient to cover its interest expenses in that period.

The most concerning observation was in Jun 30, 2020, where the interest coverage ratio was significantly negative at -35.27. A negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses, reflecting potential financial distress.

Overall, while the interest coverage ratios have shown some improvement in recent years, particularly in 2022 and 2024, the negative ratios in 2020 and 2021 highlight potential financial vulnerabilities that need to be closely monitored by investors and stakeholders.