News Corp B (NWS)
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 | -2,826,000 | -2,779,000 | -2,720,000 | -2,829,000 | -4,456,000 |
| Interest expense | US$ in thousands | 85,000 | 100,000 | 99,000 | 53,000 | 25,000 |
| Interest coverage | -33.25 | -27.79 | -27.47 | -53.38 | -178.24 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-2,826,000K ÷ $85,000K
= -33.25
The interest coverage ratio for News Corp B has shown a significant improvement over the past five years, although it remains in negative territory. From Jun 30, 2020, where the company had an interest coverage ratio of -178.24, there has been a consistent trend of betterment in managing its interest obligations.
Despite the progress, the interest coverage ratio for News Corp B remains inadequate as it has not yet reached a level where the company's operating income can sufficiently cover its interest expenses. Negative interest coverage ratios indicate that the company's operating income is not enough to cover its interest expenses, posing a risk in terms of financial stability and ability to meet debt obligations.
While the improving trend is positive, it is essential for News Corp B to continue enhancing its operating performance to achieve a positive interest coverage ratio, indicating a healthier financial position and reduced risk of default on its debt obligations.
Peer comparison
Jun 30, 2024