Tegna Inc (TGNA)
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 | 786,624 | 666,046 | 599,300 | 621,224 | 659,597 | 838,260 | 906,162 | 966,973 | 1,007,182 | 895,589 | 874,577 | 849,419 | 833,062 | 1,011,938 | 1,023,708 | 915,974 | 893,977 | 693,137 | 593,005 | 644,975 |
Interest expense (ttm) | US$ in thousands | 169,238 | 170,187 | 171,317 | 172,366 | 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 |
Interest coverage | 4.65 | 3.91 | 3.50 | 3.60 | 3.81 | 4.84 | 5.23 | 5.58 | 5.79 | 5.09 | 4.88 | 4.65 | 4.49 | 5.35 | 5.26 | 4.58 | 4.25 | 3.14 | 2.68 | 2.99 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $786,624K ÷ $169,238K
= 4.65
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt with its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by the amount of interest expense. A higher ratio indicates a better ability to cover interest payments.
Based on the data provided for Tegna Inc, the interest coverage ratio has shown some fluctuations over the quarters. In March 2020, the ratio was 2.99, indicating that the company's EBIT was nearly three times its interest expense. The ratio decreased slightly to 2.68 in June 2020 but started to trend upwards thereafter. By December 2020, the ratio had increased to 4.25 and continued to improve, reaching a peak of 5.79 by December 2022.
From March 2023 onwards, the interest coverage ratio showed a declining trend, dropping to 3.60 by March 2024. This could indicate either a decrease in operating income or an increase in interest expenses during this period. However, despite the decline, the ratio remained above 3.0, which is generally considered the minimum acceptable level for most investors and creditors.
Overall, Tegna Inc's interest coverage ratio has displayed resilience and remained relatively healthy throughout the period under consideration, indicating a reasonable ability to meet its interest obligations. Investors and creditors may view this favorably as it suggests the company has sufficient earnings to cover its interest expenses.
Peer comparison
Dec 31, 2024