TKO Group Holdings, Inc. (TKO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.10 | 3.16 | 3.19 | 3.15 | 3.09 | 3.06 | 6.09 | 6.31 | 6.29 | 2.83 | 2.90 | 3.10 | 3.26 |
Based on the provided data, TKO Group Holdings, Inc. maintains a strong solvency position as evidenced by its solvency ratios.
1. Debt-to-assets ratio: The company consistently maintains a debt-to-assets ratio of 0.00 across all reported periods. This indicates that the company has no debt in relation to its total assets, reflecting a low risk of financial distress and strong financial health.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 throughout all the periods. This signifies that the company funds its operations predominantly through equity capital rather than debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio also stands at 0.00 consistently across the periods. This illustrates that the company relies solely on equity to finance its operations without taking on any debt, indicating a very low level of financial risk associated with debt obligations.
4. Financial leverage ratio: The financial leverage ratio shows some fluctuations over the reporting periods, ranging from 2.83 to 6.31. Although there are variations, the ratios generally remain within a relatively stable range, indicating that the company's level of financial leverage is moderate and generally manageable. The figures suggest that the company has a balanced mix of equity and debt in its capital structure.
Overall, based on the solvency ratios analyzed, TKO Group Holdings, Inc. appears to have a conservative financial strategy with minimal debt obligations and a healthy capital structure, positioning the company well to meet its financial obligations and sustain its operations in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
TKO Group Holdings, Inc.'s interest coverage ratio has been declining over the period from December 31, 2021, to December 31, 2024. The interest coverage ratio, which indicates the company's ability to meet interest payments on its debt obligations, started at a healthy 7.82 on December 31, 2021. However, it gradually decreased to 1.14 as of December 31, 2024.
A higher interest coverage ratio is generally considered favorable as it implies that the company is generating sufficient earnings to cover its interest expenses. Conversely, a lower ratio may indicate potential financial distress as the company may be struggling to meet its interest commitments.
In the case of TKO Group Holdings, Inc., the declining trend in the interest coverage ratio suggests a deteriorating ability to cover interest payments with operating profits. This could raise concerns about the company's financial health and its ability to service its debt effectively. It may be important for stakeholders to closely monitor the company's financial performance and assess its strategies for improving profitability and managing debt to address the declining interest coverage ratio.