New York Times Company (NYT)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 384,440 | 303,602 | 235,999 | 291,270 | 116,159 |
| Interest expense | US$ in thousands | 1,017 | 1,014 | 40,691 | 769 | 727 |
| Interest coverage | 378.01 | 299.41 | 5.80 | 378.76 | 159.78 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $384,440K ÷ $1,017K
= 378.01
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a greater ability to cover interest expenses with earnings. Analyzing New York Times Company's interest coverage ratio from 2020 to 2024, we observe fluctuations in the metric over these years.
- As of December 31, 2020, the interest coverage ratio stood at an impressive 159.78, indicating a comfortable cushion to meet interest obligations.
- Subsequently, by December 31, 2021, the interest coverage ratio improved significantly to 378.76, reflecting further strengthening of the company's ability to cover interest costs.
- However, there was a notable decline in the interest coverage ratio by December 31, 2022, dropping to 5.80, which may raise concerns about the company's ability to comfortably service its interest payments with earnings.
- The ratio rebounded significantly by December 31, 2023, reaching 299.41, suggesting an improvement in the company's financial position in managing interest expenses.
- Finally, by December 31, 2024, the interest coverage ratio increased further to 378.01, indicating a continued ability to cover interest payments comfortably.
Overall, the fluctuation in New York Times Company's interest coverage ratio over the years demonstrates varying levels of strength in the company's ability to handle its interest obligations. It is crucial for investors and stakeholders to closely monitor these fluctuations to assess the company's financial health and debt servicing capabilities.
Peer comparison
Dec 31, 2024