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.