TKO Group Holdings, Inc. (TKO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 283,479 | 247,161 | 202,548 | 32,595 | 298,776 | 339,165 | 304,786 | 288,078 | 325,243 | 307,913 | 313,087 | 290,376 | 262,702 |
| Interest expense (ttm) | US$ in thousands | 249,115 | 259,468 | 257,424 | 249,561 | 239,003 | 221,203 | 195,922 | 165,677 | 139,567 | 98,869 | 72,058 | 52,900 | 33,610 |
| Interest coverage | 1.14 | 0.95 | 0.79 | 0.13 | 1.25 | 1.53 | 1.56 | 1.74 | 2.33 | 3.11 | 4.34 | 5.49 | 7.82 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $283,479K ÷ $249,115K
= 1.14
TKO Group Holdings, Inc.'s interest coverage has shown a declining trend from December 31, 2021, with a ratio of 7.82, to December 31, 2024, where the ratio dropped to 1.14. This indicates a decreasing ability to cover its interest expenses from its operating income over the period analyzed. The interest coverage ratio of less than 1 (as seen in March 31, 2024, and beyond) suggests that the company may be facing challenges in meeting its interest obligations with its operating income alone. This deteriorating trend in interest coverage may raise concerns about the company's financial health and its ability to manage its debt in the long run. Further analysis and review of the company's financial strategies and debt management practices may be necessary to address these declining interest coverage ratios.
Peer comparison
Dec 31, 2024