Sun Country Airlines Holdings Inc (SNCY)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	110,276	103,235	112,324	136,152	136,794	135,170	134,122	98,332	55,001	44,478	45,860	111,513	125,837
Interest expense (ttm)	US$ in thousands	44,300	44,600	44,954	45,116	42,634	39,193	35,283	31,086	31,018	29,936	28,729	27,767	26,326
Interest coverage		2.49	2.31	2.50	3.02	3.21	3.45	3.80	3.16	1.77	1.49	1.60	4.02	4.78

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $110,276K ÷ $44,300K
= 2.49

Sun Country Airlines Holdings Inc's interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a greater ability to cover interest expenses.

From December 31, 2021, to September 30, 2022, Sun Country Airlines Holdings Inc's interest coverage ratio declined steeply from 4.78 to 1.49, indicating a potential decrease in the company's ability to cover interest expenses with its operating income. This may raise concerns about the company's financial health and ability to meet debt obligations.

However, from December 31, 2022, to December 31, 2024, the interest coverage ratio showed some improvement, ranging from 1.77 to 2.49. While these ratios still suggest a relatively moderate ability to cover interest expenses, the increasing trend may indicate a positive development in the company's financial position.

Overall, it is essential for investors and stakeholders to monitor the interest coverage ratio of Sun Country Airlines Holdings Inc closely to assess the company's ability to manage its debt and interest payments effectively.