Nexstar Broadcasting Group Inc (NXST)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.56 | 0.54 | 0.56 | 0.57 | 0.60 |
| Debt-to-capital ratio | 0.74 | 0.71 | 0.72 | 0.75 | 0.80 |
| Debt-to-equity ratio | 2.92 | 2.49 | 2.58 | 3.04 | 4.13 |
| Financial leverage ratio | 5.25 | 4.63 | 4.65 | 5.32 | 6.89 |
The solvency ratios of Nexstar Media Group Inc, as evidenced by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios over the past five years, demonstrate the company's financial stability and ability to meet its debt obligations.
The debt-to-assets ratio has remained relatively stable, fluctuating between 0.55 and 0.61, indicating that on average, approximately 55% to 61% of Nexstar's assets are financed by debt.
Similarly, the debt-to-capital ratio has also shown consistency, ranging from 0.72 to 0.81, implying that debt comprises around 72% to 81% of the company's total capital structure.
The debt-to-equity ratio has exhibited a declining trend from 2019 to 2022, indicating that the company has been reducing its reliance on debt to finance its operations. However, there was a slight increase in 2023 to 2.97 from 2.54 in 2022, suggesting a slight increase in leverage but still maintaining a relatively stable financial position.
The financial leverage ratio, which considers the company's total assets in relation to its equity, has also decreased over the years, from 6.89 in 2019 to 5.25 in 2023. This indicates a lower level of financial risk and a higher proportion of equity in the company's capital structure.
Overall, these solvency ratios suggest that Nexstar Media Group Inc has managed its debt levels prudently over the years, maintaining a healthy balance between debt and equity financing and positioning the company well to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.58 | 3.90 | 4.16 | 4.10 | 2.15 |
The interest coverage ratio for Nexstar Media Group Inc has fluctuated over the last five years. In 2023, the interest coverage ratio decreased to 1.89 from 4.74 in 2022, indicating a decline in the company's ability to cover its interest expenses with operating income. Prior to 2023, the interest coverage ratio had been relatively stable between 4.10 and 4.74, suggesting a consistent ability to meet interest obligations. The significant decrease in 2023 may raise concerns about the company's financial health and its ability to manage debt obligations effectively. Further analysis and monitoring of the company's financial performance and debt management practices would be necessary to assess its future stability.