Ameren Corp (AEE)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,558,000 | 1,570,000 | 1,555,000 | 1,535,000 | 1,515,000 | 1,436,000 | 1,371,000 | 1,348,000 | 1,333,000 | 1,347,000 | 1,307,000 | 1,375,000 | 1,300,000 | 1,268,000 | 1,294,000 | 1,220,000 | 1,267,000 | 1,254,000 | 1,267,000 | 1,372,000 |
| Interest expense (ttm) | US$ in thousands | 566,000 | 543,000 | 517,000 | 509,000 | 486,000 | 449,000 | 417,000 | 387,000 | 383,000 | 398,000 | 414,000 | 426,000 | 419,000 | 402,000 | 388,000 | 377,000 | 381,000 | 389,000 | 394,000 | 397,000 |
| Interest coverage | 2.75 | 2.89 | 3.01 | 3.02 | 3.12 | 3.20 | 3.29 | 3.48 | 3.48 | 3.38 | 3.16 | 3.23 | 3.10 | 3.15 | 3.34 | 3.24 | 3.33 | 3.22 | 3.22 | 3.46 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,558,000K ÷ $566,000K
= 2.75
Ameren Corp.'s interest coverage ratio has exhibited a decreasing trend over the past eight quarters, indicating a potential decline in the company's ability to cover its interest expenses with its operating income. Despite this declining trend, the interest coverage ratio has consistently remained above 2.0, suggesting that Ameren Corp. is still generating sufficient operating income to meet its interest obligations.
The gradual decrease in the interest coverage ratio may be a cause for concern, as it could indicate increasing financial risk for the company. A lower interest coverage ratio implies that Ameren Corp. may have less financial flexibility to take on additional debt or navigate unexpected challenges in the future.
Overall, while Ameren Corp.'s interest coverage ratio has been on a slight decline, it is important for the company to monitor this trend closely and take appropriate measures to maintain a healthy balance between its operating income and interest expenses.
Peer comparison
Dec 31, 2023