Nexstar Broadcasting Group Inc (NXST)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 708,000 | 1,312,100 | 1,175,400 | 1,375,400 | 655,131 |
| Interest expense | US$ in thousands | 447,000 | 336,600 | 282,651 | 335,303 | 304,350 |
| Interest coverage | 1.58 | 3.90 | 4.16 | 4.10 | 2.15 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $708,000K ÷ $447,000K
= 1.58
The interest coverage ratio of Nexstar Media Group Inc has shown some fluctuations over the past five years. The ratio stood at 1.89 in 2023, which indicates that the company generated enough earnings before interest and taxes (EBIT) to cover its interest expense approximately 1.89 times. This represents a decrease from the prior year's ratio of 4.74 in 2022. The trend in recent years shows some volatility, with ratios ranging from 1.87 in 2019 to 4.74 in 2022. A declining interest coverage ratio can be a cause for concern as it suggests a reduced ability to meet interest obligations out of operating profits. It is essential for investors and creditors to monitor this ratio closely to assess the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2023