News Corp A (NWSA)
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
Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest payment obligations on outstanding debt. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expenses. A higher interest coverage ratio indicates a stronger ability to fulfill interest payments.
Based on the data provided for News Corp A, the interest coverage ratio has shown significant volatility over the past few quarters. The negative values observed indicate that the company's EBIT was insufficient to cover its interest expenses during those periods. This signifies a potential financial risk, as the company may struggle to meet its debt obligations.
The fluctuations in the interest coverage ratio suggest variations in the company's profitability and financial stability. A declining trend in the ratio over time could raise concerns about the company's ability to generate enough earnings to service its debt effectively.
It is important for News Corp A to closely monitor its interest coverage ratio and take proactive measures to improve profitability and cash flow generation to ensure it can comfortably meet its interest payment obligations in the future.
Peer comparison
Jun 30, 2024