EchoStar Corporation (SATS)
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 | -757,426 | 146,336 | 171,290 | 172,823 | 189,644 | 173,651 | 189,214 | 208,616 | 217,010 | 211,475 | 185,868 | 155,332 | 112,473 | 105,962 | 95,065 | 55,632 | 73,077 | -9,167 | 43,670 | 204,889 |
| Interest expense (ttm) | US$ in thousands | 104,447 | 53,221 | 54,416 | 55,483 | 57,170 | 58,789 | 61,257 | 75,818 | 95,512 | 115,317 | 136,971 | 146,361 | 147,927 | 206,661 | 218,559 | 234,050 | 251,016 | 212,063 | 217,076 | 224,861 |
| Interest coverage | -7.25 | 2.75 | 3.15 | 3.11 | 3.32 | 2.95 | 3.09 | 2.75 | 2.27 | 1.83 | 1.36 | 1.06 | 0.76 | 0.51 | 0.43 | 0.24 | 0.29 | -0.04 | 0.20 | 0.91 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-757,426K ÷ $104,447K
= -7.25
EchoStar Corporation's interest coverage ratio has fluctuated over the past several quarters. The interest coverage ratio measures the company's ability to meet its interest payment obligations from its operating profits. A lower interest coverage ratio indicates that the company may have difficulty meeting its interest payments and could be at a higher risk of default.
Looking at the data:
- In the most recent quarter as of December 31, 2023, the interest coverage ratio was -7.25, which indicates that the company's operating profits were insufficient to cover its interest expenses.
- Prior to this significant decrease, there was a period of improvement in the interest coverage ratio from the previous quarters, with ratios ranging from 2.27 to 3.32, showing better ability to cover interest payments.
- However, the interest coverage ratio had been consistently below 1.0 prior to the recent improvement, indicating that the company had struggled to cover its interest expenses with its operating profits.
Overall, the trend in EchoStar Corporation's interest coverage ratio suggests ongoing challenges in generating sufficient operating profits to cover interest expenses, with periods of improvement followed by significant deterioration. This indicates the importance for the company to improve its financial performance and manage its debt obligations effectively.
Peer comparison
Dec 31, 2023