Madison Square Garden Sports Corp (MSGS)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 146,038 | 114,970 | 87,918 | -76,814 | -157,334 |
| Interest expense | US$ in thousands | 27,589 | 22,884 | 11,735 | 10,561 | 4,461 |
| Interest coverage | 5.29 | 5.02 | 7.49 | -7.27 | -35.27 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $146,038K ÷ $27,589K
= 5.29
Madison Square Garden Sports Corp's interest coverage ratio has shown some fluctuations over the past five years. The ratio has generally been positive, indicating that the company is generating enough operating income to cover its interest expenses.
In 2024, the interest coverage ratio was 5.29, which suggests that the company's operating income was sufficient to cover its interest expenses by over 5 times. This indicates a healthy level of financial stability and ability to meet its interest obligations comfortably.
Similarly, in 2023 and 2022, the interest coverage ratios were 5.02 and 7.49 respectively, showing consistent ability to cover interest expenses. However, there was a significant decline in 2021 when the interest coverage ratio was -7.27, indicating that the company's operating income was not sufficient to cover its interest expenses during that period.
The most concerning year was 2020 when the interest coverage ratio was -35.27, indicating a severe inability to cover interest expenses from operating income. This suggests a potential liquidity or financial distress situation during that period.
Overall, while there have been fluctuations in Madison Square Garden Sports Corp's interest coverage ratio, the recent years show a generally positive trend, indicating an improved ability to cover interest expenses from operating income. However, close monitoring of the ratio is advisable to ensure the company's financial health and ability to meet its debt obligations.
Peer comparison
Jun 30, 2024