TKO Group Holdings, Inc. (TKO)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 283,465 | 446,477 | 543,116 | 263,472 | 206,710 |
| Interest expense | US$ in thousands | 249,115 | 239,042 | 139,567 | 102,247 | 118,550 |
| Interest coverage | 1.14 | 1.87 | 3.89 | 2.58 | 1.74 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $283,465K ÷ $249,115K
= 1.14
TKO Group Holdings, Inc.'s interest coverage ratio has shown fluctuations over the past five years. In December 2020, the interest coverage ratio was 1.74, indicating that the company's operating income was able to cover its interest expenses 1.74 times.
By December 2021, the interest coverage ratio improved to 2.58, demonstrating a better ability to meet interest obligations. This trend continued as of December 2022, with the ratio increasing to 3.89, suggesting a stronger financial position in covering interest charges.
However, in December 2023, there was a decline in the interest coverage ratio to 1.87, indicating a potential weakening in the company's ability to cover interest expenses. This decline continued into December 2024, with a further decrease to 1.14, raising concerns about the company's capacity to meet its interest obligations comfortably.
Overall, while there have been fluctuations in TKO Group Holdings, Inc.'s interest coverage ratio over the years, the general trend reveals a mix of improvements and challenges in the company's ability to fulfill its interest payment obligations from its operating income. Further analysis and monitoring of the company's financial performance and debt management may be necessary to assess its long-term stability and financial health.
Peer comparison
Dec 31, 2024