Madison Square Garden Sports Corp (MSGS)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 136,510 | 78,708 | 102,237 | 122,935 | 114,970 | 144,347 | 103,968 | 87,388 | 87,918 | 43,660 | -9,846 | -84,359 | -76,814 | -101,007 | -221,031 | -85,353 | -157,334 | -219,860 | -57,367 | -67,646 |
| Interest expense (ttm) | US$ in thousands | 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 | 4,461 | -6,404 | -2,866 | 1,514 |
| Interest coverage | 4.95 | 2.84 | 3.67 | 4.64 | 5.02 | 7.61 | 7.20 | 7.32 | 7.49 | 3.55 | -0.77 | -7.23 | -7.27 | -10.48 | -29.22 | -14.53 | -35.27 | — | — | -44.68 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $136,510K ÷ $27,589K
= 4.95
Madison Square Garden Sports Corp's interest coverage ratio has shown fluctuations over the period analyzed. The interest coverage ratio is a measure of the company's ability to meet its interest obligations with its operating income.
From December 2020 to March 2021, the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses during that period. This is a cause for concern as it suggests financial distress or an unsustainable level of debt.
However, from June 2021 onwards, the interest coverage ratio improved significantly, reaching positive levels. The ratio peaked at 7.61 in March 2023, indicating a strong ability to cover interest payments with operating income.
Overall, the trend in interest coverage suggests varying levels of financial strength and stability for Madison Square Garden Sports Corp. Investors and analysts may want to closely monitor the company's ability to generate sufficient operating income to cover its interest expenses in the future.
Peer comparison
Jun 30, 2024