Nexstar Broadcasting Group Inc (NXST)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,402,000 | 1,223,000 | 993,000 | 952,000 | 847,000 | 934,100 | 1,265,100 | 1,417,600 | 1,553,700 | 1,603,562 | 1,450,949 | 1,418,092 | 1,375,965 | 1,543,999 | 1,570,367 | 1,447,522 | 1,439,871 | 1,147,989 | 943,762 | 860,773 |
| Interest expense (ttm) | US$ in thousands | 444,000 | 455,000 | 455,000 | 453,000 | 446,000 | 434,400 | 410,000 | 374,400 | 336,600 | 303,294 | 285,071 | 279,797 | 282,651 | 287,060 | 293,948 | 306,073 | 335,303 | 367,631 | 383,565 | 352,677 |
| Interest coverage | 3.16 | 2.69 | 2.18 | 2.10 | 1.90 | 2.15 | 3.09 | 3.79 | 4.62 | 5.29 | 5.09 | 5.07 | 4.87 | 5.38 | 5.34 | 4.73 | 4.29 | 3.12 | 2.46 | 2.44 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,402,000K ÷ $444,000K
= 3.16
Nexstar Broadcasting Group Inc's interest coverage ratio has shown fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
Initially, the interest coverage ratio was around 2.44 in March 2020 and June 2020, indicating that the company's EBIT was capable of covering its interest expenses roughly 2.44 times over. This ratio improved gradually over the subsequent quarters, reaching its peak at 5.38 in September 2021. A higher interest coverage ratio is favorable as it signifies a strong ability to service debt.
However, from December 2021 to December 2024, the interest coverage ratio started to decline. By December 2024, the ratio had decreased to 3.16, indicating a slight decrease in Nexstar's capability to cover its interest payments. It is important for investors and creditors to closely monitor this ratio, as a declining trend could potentially signal financial distress if the company's earnings do not support its debt obligations.
Overall, Nexstar Broadcasting Group Inc has generally maintained a decent interest coverage ratio over the analyzed period, although a declining trend towards the end of the period warrants further attention and monitoring to ensure the company's financial health.
Peer comparison
Dec 31, 2024