Sun Country Airlines Holdings Inc (SNCY)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 136,794 | 135,170 | 134,122 | 98,332 | 55,001 | 44,478 | 45,860 | 111,513 | 125,837 |
| Interest expense (ttm) | US$ in thousands | 42,634 | 39,193 | 35,283 | 31,086 | 31,018 | 29,936 | 28,729 | 27,767 | 26,326 |
| Interest coverage | 3.21 | 3.45 | 3.80 | 3.16 | 1.77 | 1.49 | 1.60 | 4.02 | 4.78 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $136,794K ÷ $42,634K
= 3.21
Sun Country Airlines Holdings Inc's interest coverage ratio has shown an improving trend over the past eight quarters. The interest coverage ratio, which measures the company's ability to cover its interest expenses with operating income, increased from 2.10 in Q4 2022 to 3.93 in Q4 2023. This indicates that the company's operating income is able to cover its interest expenses nearly four times in Q4 2023, showing a significant improvement in financial health. The consistent increase in the interest coverage ratio from Q4 2022 to Q4 2023 suggests that Sun Country Airlines Holdings Inc has been effectively managing its interest expenses and generating sufficient operating income to meet its financial obligations. Overall, the trend in interest coverage indicates a positive outlook for the company's financial stability and ability to service its debt obligations.
Peer comparison
Dec 31, 2023