Sun Country Airlines Holdings Inc (SNCY)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 136,793 | 55,000 | 126,656 |
| Interest expense | US$ in thousands | 42,634 | 31,018 | 26,326 |
| Interest coverage | 3.21 | 1.77 | 4.81 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $136,793K ÷ $42,634K
= 3.21
The interest coverage ratio of Sun Country Airlines Holdings Inc has shown a positive trend over the past three years, indicating the company's improving ability to meet its interest payment obligations. The interest coverage ratio has increased steadily from 1.58 in 2021 to 2.10 in 2022, and further to 3.93 in 2023. This signifies that the company's operating income is sufficient to cover its interest expenses by multiples of 3.93 times in 2023, up from 2.10 times in 2022 and 1.58 times in 2021.
A higher interest coverage ratio suggests that Sun Country Airlines Holdings Inc has a strong ability to service its debt obligations with its operating income. This improvement in the interest coverage ratio indicates that the company is better positioned to manage its debt and is becoming more financially stable over time. It is important to note that a higher interest coverage ratio generally indicates lower financial risk for creditors and investors.
Peer comparison
Dec 31, 2023