Tegna Inc (TGNA)
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 | 779,827 | 965,961 | 1,031,857 | 963,297 | 1,006,861 | 881,960 | 860,289 | 825,962 | 798,086 | 969,024 | 983,479 | 877,688 | 847,365 | 649,855 | 529,652 | 602,382 | 581,127 | 653,441 | 706,728 | 724,938 |
| Interest expense (ttm) | US$ in thousands | 172,904 | 173,167 | 173,155 | 173,308 | 174,022 | 176,055 | 179,126 | 182,785 | 185,650 | 189,132 | 194,551 | 199,819 | 210,294 | 221,037 | 221,595 | 216,045 | 205,470 | 192,176 | 187,948 | 190,725 |
| Interest coverage | 4.51 | 5.58 | 5.96 | 5.56 | 5.79 | 5.01 | 4.80 | 4.52 | 4.30 | 5.12 | 5.06 | 4.39 | 4.03 | 2.94 | 2.39 | 2.79 | 2.83 | 3.40 | 3.76 | 3.80 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $779,827K ÷ $172,904K
= 4.51
TEGNA Inc's interest coverage ratio, calculated as EBIT divided by interest expense, provides insight into the company's ability to meet its interest obligations. The interest coverage ratio has been relatively stable over the past year, ranging from 4.18 to 5.67. This indicates that TEGNA has consistently generated enough earnings before interest and taxes (EBIT) to cover its interest expenses, with the highest coverage ratio observed in Q1 2023 at 5.50.
A higher interest coverage ratio suggests that the company is in a better position to fulfill its interest payments and indicates a lower financial risk. TEGNA's interest coverage ratios above 4 demonstrate a healthy financial position, with the ability to comfortably pay its interest obligations. However, it's important to monitor this ratio over time to ensure that TEGNA continues to generate sufficient earnings to cover its interest expenses.
Peer comparison
Dec 31, 2023