Molson Coors Brewing Co Class B (TAP)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,785,700 | 1,481,300 | 1,129,600 | 1,500,600 | -358,000 |
| Interest expense | US$ in thousands | 282,700 | 234,000 | 250,600 | 260,300 | 274,600 |
| Interest coverage | 6.32 | 6.33 | 4.51 | 5.76 | -1.30 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,785,700K ÷ $282,700K
= 6.32
Interest coverage ratio is a significant financial metric that indicates Molson Coors Brewing Co Class B's ability to meet its interest obligations. A higher interest coverage ratio suggests that the company is more capable of covering its interest expenses from its operating income.
Reviewing the historical interest coverage ratios of Molson Coors Brewing Co Class B, we observe fluctuating values over the years. As of December 31, 2020, the interest coverage ratio was negative at -1.30, indicating that the company's operating income was not sufficient to cover its interest expenses. However, there was a noticeable improvement by December 31, 2021, with the ratio increasing to 5.76, indicating a more favorable position.
Subsequently, the interest coverage ratio remained relatively stable in the following years, with ratios of 4.51 as of December 31, 2022, 6.33 as of December 31, 2023, and 6.32 as of December 31, 2024. These values suggest that Molson Coors Brewing Co Class B had sufficient operating income to cover its interest expenses comfortably during these periods.
Overall, the trend in Molson Coors Brewing Co Class B's interest coverage ratios indicates an improvement in its ability to meet interest obligations over the years, reflecting a more stable financial position in terms of covering interest expenses.
Peer comparison
Dec 31, 2024