Ameren Corp (AEE)
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 | 1,933,000 | 1,905,000 | 1,741,000 | 1,535,000 | 1,383,000 |
| Interest expense | US$ in thousands | 663,000 | 566,000 | 486,000 | 383,000 | 419,000 |
| Interest coverage | 2.92 | 3.37 | 3.58 | 4.01 | 3.30 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,933,000K ÷ $663,000K
= 2.92
Based on the data provided for Ameren Corp's interest coverage ratio over the past five years, we observe the following trend:
- As of December 31, 2020, the interest coverage ratio was 3.30, indicating that the company's operating income was able to cover its interest expenses 3.30 times over.
- By the end of December 31, 2021, the interest coverage ratio improved to 4.01, suggesting a stronger ability to meet interest obligations from operating earnings.
- However, in the following years, the interest coverage ratio experienced slight fluctuations. On December 31, 2022, it stood at 3.58, followed by a decrease to 3.37 on December 31, 2023.
- As of the most recent data available on December 31, 2024, the interest coverage ratio decreased further to 2.92, indicating a potential decrease in the firm's ability to cover interest payments from operating earnings.
In summary, Ameren Corp's interest coverage ratio has shown some variability over the past five years, with improvements visible initially but followed by a decline in the latter years. It is important for investors and stakeholders to monitor this ratio closely as it provides insights into the company's ability to service its debt obligations.
Peer comparison
Dec 31, 2024