Madison Square Garden Sports Corp (MSGS)

The analysis of Madison Square Garden Sports Corp’s solvency ratios over the specified period reveals a consistent pattern indicative of a debt-free capital structure. Specifically, the debt-to-assets ratio remains at zero across all dates from June 30, 2021, through June 30, 2025, signifying that the company has not employed debt financing or has effectively eliminated its debt obligations during this timeframe. Similarly, the debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio are unreported (denoted by "—"), which further supports the inference that the company’s financial structure is devoid of leverage or debt-related liabilities.

This pattern suggests that Madison Square Garden Sports Corp has maintained a strong solvency position characterized by the absence of leverage, reducing the risk associated with debt obligations and emphasizing reliance on equity or internal funding sources. The absence of leverage ratios over multiple years underscores a conservative capital strategy, contributing positively to the company's financial stability and risk profile from a solvency standpoint.

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Coverage ratios

The interest coverage ratio for Madison Square Garden Sports Corp has exhibited significant fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. On June 30, 2021, the company experienced a substantially negative interest coverage ratio of -7.46, indicating that its earnings before interest and taxes (EBIT) were insufficient to cover interest expenses, and potentially reflecting operational difficulties or significant interest obligations relative to earnings.

By June 30, 2022, the ratio markedly improved to 7.30, signaling a robust ability to meet interest obligations with earnings. This positive shift suggests an enhancement in operating performance or a reduction in interest expenses, contributing to a healthier coverage position.

The ratio declined slightly to 4.93 by June 30, 2023, yet remained comfortably above 1.0, indicating that the company's earnings continued to sufficiently cover its interest expenses, albeit with reduced margin compared to the previous year.

A marginal decline is observed again by June 30, 2024, with the ratio standing at 4.83, suggesting stability in the company's ability to meet interest obligations from year to year, but signaling potential pressure or flattening in its interest coverage capacity.

However, projections for June 30, 2025, reveal a sharp deterioration, with the ratio dropping to 0.20. This near-zero coverage indicates a significant decline in earnings relative to interest expenses, implying potential difficulty in servicing debt solely from operational income and raising concerns about financial sustainability and creditworthiness.

Overall, the trend reflects initial recovery following a problematic period, but the projected decline in 2025 indicates emerging stress and warrants close monitoring of earnings performance and debt obligations moving forward.