Molson Coors Brewing Co Class B (TAP)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,479,000 | 199,300 | 1,496,500 | -372,600 | 756,300 |
| Interest expense | US$ in thousands | 234,000 | 250,600 | 260,300 | 274,600 | 280,900 |
| Interest coverage | 6.32 | 0.80 | 5.75 | -1.36 | 2.69 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,479,000K ÷ $234,000K
= 6.32
Looking at the trend in Molson Coors Beverage Company's interest coverage ratio over the past five years, we observe fluctuations in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
The interest coverage ratio has ranged from a low of 4.23 in 2022 to a high of 6.89 in 2023. Generally, a higher interest coverage ratio indicates a stronger ability to meet interest obligations from operating profits. In 2023, the interest coverage ratio improved significantly compared to the previous year, signaling a better capacity to service debt obligations.
It is essential to note that while the interest coverage ratio has shown some variability, the overall trend appears to have been relatively stable over the period under review. This suggests that Molson Coors Beverage Company has maintained a reasonably healthy ability to cover its interest expenses with operating profits, which is a positive indicator of financial health and stability.
Further analysis and consideration of other financial metrics would be necessary to gain a more comprehensive understanding of the company's overall financial performance and leverage position.
Peer comparison
Dec 31, 2023