Nexstar Broadcasting Group Inc (NXST)
Interest coverage
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 708,000 | 771,100 | 1,033,100 | 1,188,100 | 1,313,100 | 1,343,800 | 1,265,200 | 1,219,500 | 1,175,400 | 1,381,131 | 1,447,328 | 1,355,281 | 1,375,396 | 1,101,363 | 879,381 | 833,072 | 655,131 | 671,409 | 742,687 | 767,237 |
| Interest expense (ttm) | US$ in thousands | 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 | 304,350 | 251,406 | 214,444 | 219,362 |
| Interest coverage | 1.59 | 1.78 | 2.52 | 3.17 | 3.90 | 4.43 | 4.44 | 4.36 | 4.16 | 4.81 | 4.92 | 4.43 | 4.10 | 3.00 | 2.29 | 2.36 | 2.15 | 2.67 | 3.46 | 3.50 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $708,000K ÷ $446,000K
= 1.59
Nexstar Media Group Inc's interest coverage has shown a declining trend over the past several quarters. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt, with higher ratios indicating a stronger ability to cover interest expenses.
In Q4 2022, Nexstar Media Group Inc had an interest coverage of 4.74, which decreased to 1.89 in Q4 2023. This decline indicates that the company's ability to cover its interest expenses declined significantly during this period. Similar trends were observed in the intervening quarters, with the interest coverage ratio decreasing gradually.
A decreasing interest coverage ratio could raise concerns among investors and creditors as it suggests that the company may face challenges in meeting its interest payments. It may indicate higher levels of debt relative to operating income or declining profitability.
Further analysis of Nexstar Media Group Inc's financial statements and performance drivers would be necessary to understand the reasons behind the declining interest coverage ratio and to assess the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2023