Sun Country Airlines Holdings Inc (SNCY)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 105,986 | 136,793 | 55,000 | 126,656 |
| Interest expense | US$ in thousands | 5,054 | 42,634 | 31,018 | 26,326 |
| Interest coverage | 20.97 | 3.21 | 1.77 | 4.81 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $105,986K ÷ $5,054K
= 20.97
Sun Country Airlines Holdings Inc's interest coverage ratio has fluctuated over the years. In December 31, 2021, the interest coverage ratio was 4.81, indicating that the company generated enough earnings before interest and taxes to cover its interest expenses 4.81 times. However, by December 31, 2022, the ratio dropped to 1.77, suggesting a decrease in the company's ability to cover its interest payments.
In December 31, 2023, the interest coverage ratio improved to 3.21, showing a partial recovery in the company's ability to meet its interest obligations. Notably, by December 31, 2024, the interest coverage ratio significantly spiked to 20.97, signaling a remarkable improvement in the company's ability to cover its interest expenses, possibly due to increased profitability or lower interest costs.
Overall, the fluctuation in Sun Country Airlines Holdings Inc's interest coverage ratio over the years indicates varying levels of financial risk and stability. Stakeholders should closely monitor this ratio to assess the company's ability to meet its debt obligations consistently.
Peer comparison
Dec 31, 2024