News Corp B (NWS)
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 | -2,826,000 | -2,769,000 | -2,730,000 | -2,781,000 | -2,779,000 | -2,935,000 | -2,945,000 | -2,800,000 | -2,720,000 | -2,861,000 | -2,878,000 | -2,833,000 | -2,829,000 | -450,000 | -1,480,000 | -1,678,000 | -2,077,000 | -950,000 | 71,000 | 64,000 |
| Interest expense (ttm) | US$ in thousands | 99,000 | 103,000 | 109,000 | 96,000 | 100,000 | 109,000 | 109,000 | 104,000 | 99,000 | 89,000 | 76,000 | 67,000 | 53,000 | 44,000 | 41,000 | 37,000 | 33,000 | 35,000 | 40,000 | 47,000 |
| Interest coverage | -28.55 | -26.88 | -25.05 | -28.97 | -27.79 | -26.93 | -27.02 | -26.92 | -27.47 | -32.15 | -37.87 | -42.28 | -53.38 | -10.23 | -36.10 | -45.35 | -62.94 | -27.14 | 1.78 | 1.36 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-2,826,000K ÷ $99,000K
= -28.55
The interest coverage ratio for News Corp B has shown significant fluctuation over the past few quarters, with negative values recorded in most periods. This indicates that the company's operating profit was insufficient to cover its interest expenses during those specific quarters. It is notable that the interest coverage ratio has been consistently below 0 in recent periods, signaling considerable financial risk and potential challenges in meeting debt obligations.
The trend of declining interest coverage ratios, reaching extreme negative values in some quarters, suggests a concerning financial position for News Corp B. The company may be facing liquidity issues or experiencing a decline in profitability that is impacting its ability to service its debt effectively. Investors and creditors may interpret these low interest coverage ratios as a red flag for the company's financial health and sustainability. It is crucial for stakeholders to closely monitor News Corp B's financial performance and debt management strategies to assess the risks associated with its current financial position.
Peer comparison
Jun 30, 2024