Tegna Inc (TGNA)
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 | 779,827 | 1,006,860 | 798,086 | 847,365 | 581,127 |
| Interest expense | US$ in thousands | 172,904 | 174,022 | 185,650 | 210,294 | 205,470 |
| Interest coverage | 4.51 | 5.79 | 4.30 | 4.03 | 2.83 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $779,827K ÷ $172,904K
= 4.51
The interest coverage ratio of TEGNA Inc has exhibited a generally positive trend over the past five years, indicating the company's ability to comfortably cover its interest expenses with its operating income. In 2022, the ratio was at its highest at 5.67, showing a strong ability to meet interest obligations. This was followed by a slight decline in 2023 to 4.18, but the ratio still remained at a healthy level.
Overall, the company has maintained a consistently solid interest coverage ratio above 4. This indicates that TEGNA Inc has a sufficient level of earnings to cover its interest costs, reducing financial risk and demonstrating financial stability. Furthermore, the steady improvement in the interest coverage ratio over the years suggests efficient management of debt and a stable financial position.
Peer comparison
Dec 31, 2023