Molson Coors Brewing Co Class B (TAP)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,800,400 | 1,795,100 | 1,879,200 | 1,757,100 | 1,599,100 | 739,100 | 467,200 | 103,300 | 210,000 | 889,000 | 1,100,700 | 1,580,800 | 1,516,900 | 75,300 | 109,200 | 36,300 | -163,200 | 380,300 | 278,700 | 176,000 |
| Interest expense (ttm) | US$ in thousands | 245,600 | 236,200 | 191,100 | 194,400 | 203,400 | 219,200 | 229,900 | 242,900 | 249,600 | 250,400 | 255,000 | 256,700 | 260,800 | 266,000 | 272,600 | 276,100 | 282,600 | 306,500 | 302,200 | 296,000 |
| Interest coverage | 7.33 | 7.60 | 9.83 | 9.04 | 7.86 | 3.37 | 2.03 | 0.43 | 0.84 | 3.55 | 4.32 | 6.16 | 5.82 | 0.28 | 0.40 | 0.13 | -0.58 | 1.24 | 0.92 | 0.59 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,800,400K ÷ $245,600K
= 7.33
The interest coverage ratio for Molson Coors Brewing Co Class B has shown fluctuations over the periods analyzed. The ratio provides insight into the company's ability to meet its interest obligations with its operating income. A ratio below 1 indicates that the company is not generating enough operating profit to cover its interest expenses.
From March 31, 2020, to December 31, 2020, the interest coverage ratio was consistently below 1, indicating a significant challenge for the company in meeting its interest expenses from its operating income during that period.
However, from December 31, 2021, onwards, the interest coverage ratio showed a substantial improvement, reaching and exceeding 5, indicating that Molson Coors Brewing Co Class B was generating sufficient operating income to cover its interest payments multiple times over.
The upward trend in the interest coverage ratio from March 31, 2021, to June 30, 2024, suggests an improvement in the company's ability to service its debt obligations. The peak in the interest coverage ratio observed on March 31, 2024, and the subsequent decrease in the following quarters could be an area for further analysis to understand the factors influencing these changes.
Overall, the trend in Molson Coors Brewing Co Class B's interest coverage ratio indicates a mixed performance in meeting interest obligations, with recent improvements suggesting a strengthening financial position in terms of meeting debt obligations with operating income.
Peer comparison
Dec 31, 2024