Molson Coors Brewing Co Class B (TAP)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,438,200 | 727,400 | 465,300 | 91,300 | 157,500 | 834,000 | 1,035,300 | 1,501,600 | 1,454,400 | 6,700 | -16,400 | -139,200 | -408,900 | 1,184,700 | 439,100 | 449,800 | 764,400 | 595,200 | 1,302,200 | 1,424,400 |
| Interest expense (ttm) | US$ in thousands | 234,000 | 239,600 | 241,800 | 248,100 | 250,600 | 252,000 | 256,300 | 258,400 | 260,300 | 265,400 | 269,800 | 271,100 | 274,600 | 276,400 | 276,400 | 276,400 | 280,900 | 281,400 | 290,900 | 299,000 |
| Interest coverage | 6.15 | 3.04 | 1.92 | 0.37 | 0.63 | 3.31 | 4.04 | 5.81 | 5.59 | 0.03 | -0.06 | -0.51 | -1.49 | 4.29 | 1.59 | 1.63 | 2.72 | 2.12 | 4.48 | 4.76 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,438,200K ÷ $234,000K
= 6.15
Molson Coors Beverage Company's interest coverage ratio, a measure of its ability to meet interest payments on its outstanding debt, has fluctuated over the past eight quarters. In Q4 2023 and Q3 2023, the interest coverage ratios were 6.89 and 7.27 respectively, indicating a strong ability to cover interest expenses. This positive trend continued from previous quarters, suggesting improved financial health.
However, in Q2 2023 and Q1 2023, the interest coverage ratios decreased to 5.74 and 3.91, showing a decline in the company's ability to cover interest payments. This could be a red flag for investors and creditors as lower interest coverage may signify financial strain or inefficiencies in managing debt obligations.
Comparing the recent performance to the same quarters in the prior year, Molson Coors' interest coverage ratio showed improvement. In Q4 2022, the ratio was 4.23, and in Q3 2022, it was 3.53, both lower than the current ratios. However, in Q2 2022 and Q1 2022, the interest coverage ratios were higher at 4.27 and 6.10 respectively, indicating a better ability to cover interest expenses in those quarters.
Overall, Molson Coors Beverage Company's interest coverage has shown variability in the past eight quarters. It is crucial for stakeholders to monitor this ratio closely to assess the company's financial stability and debt repayment capacity.
Peer comparison
Dec 31, 2023