Madison Square Garden Sports Corp (MSGS)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,380 | 78,707 | 130,721 | 155,752 | 137,251 | 79,319 | 101,434 | 121,477 | 112,805 | 141,879 | 101,482 | 84,910 | 85,667 | 41,485 | -11,810 | -86,184 | -78,757 | -102,943 | -261,119 | -127,403 |
| Interest expense (ttm) | US$ in thousands | 21,652 | 22,982 | 24,883 | 26,715 | 27,589 | 27,758 | 27,841 | 26,501 | 22,884 | 18,972 | 14,438 | 11,944 | 11,735 | 12,304 | 12,773 | 11,675 | 10,561 | 9,636 | 7,564 | 5,873 |
| Interest coverage | 0.20 | 3.42 | 5.25 | 5.83 | 4.97 | 2.86 | 3.64 | 4.58 | 4.93 | 7.48 | 7.03 | 7.11 | 7.30 | 3.37 | -0.92 | -7.38 | -7.46 | -10.68 | -34.52 | -21.69 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,380K ÷ $21,652K
= 0.20
The interest coverage ratios for Madison Square Garden Sports Corp from September 2020 through June 2025 demonstrate a notable fluctuation over the analyzed period, reflecting periods of financial distress as well as relative stabilization.
Initially, during late 2020 and early 2021, the company experienced significant negative interest coverage ratios, with values of -21.69 (September 30, 2020), -34.52 (December 31, 2020), -10.68 (March 31, 2021), -7.46 (June 30, 2021), and -7.38 (September 30, 2021). These figures indicate that during this period, earnings before interest and taxes (EBIT) were insufficient to cover interest expenses, implying substantial financial distress and potential liquidity concerns.
A marked turnaround began in late 2021; by December 31, 2021, the ratio approached near 0 at -0.92, suggesting a stabilization of earnings relative to interest obligations. Subsequently, in 2022, the ratios turned positive, with values of 3.37 (March 31, 2022), 7.30 (June 30, 2022), and 7.11 (September 30, 2022), indicating that EBIT comfortably covered interest expenses and reflecting improved profitability and financial health.
This positive trend persisted into late 2022 and early 2023, with ratios remaining above 7.00—specifically, 7.03 (December 31, 2022), 7.48 (March 31, 2023), and 4.93 (June 30, 2023). The ratios demonstrated that interest expenses were well covered by earnings, supporting a relatively stable financial position during this period.
However, from mid-2023 onward, a decline is observed. The ratios decreased to 4.58 (September 30, 2023), then further to 3.64 (December 31, 2023), and continued declining through the first half of 2024, reaching 2.86 (March 31, 2024). Although still positive, these figures suggest a diminishing capacity to generate earnings sufficient to cover interest expenses.
Projected data for the subsequent periods indicate further deterioration, with ratios falling to 0.20 (June 30, 2025). This near-zero coverage ratio signifies a fragile financial situation, where earnings are almost insufficient to meet interest obligations. If such trends persist, the company may face increasing financial strain, potentially affecting its liquidity and solvency.
In summary, Madison Square Garden Sports Corp’s interest coverage ratio illustrates a transition from severe distress in late 2020 and early 2021 to relative stability and stronger coverage through late 2022 and into 2023. Nonetheless, recent declines indicate a potential weakening of financial robustness, warranting close monitoring for signs of further deterioration or improvement based on operational and financial strategies.
Peer comparison
Jun 30, 2025