Atlas Energy Solutions Inc. (AESI)

Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.

In the case of Atlas Energy Solutions Inc., the interest coverage ratios for the periods ending on June 30, 2024, September 30, 2024, and December 31, 2024 were 8.12, 4.59, and 28.52, respectively.

The interest coverage ratio of 8.12 as of June 30, 2024, suggests that the company generated 8.12 times the earnings required to cover its interest expenses for that period. This indicates a healthy ability to meet its interest obligations.

However, the interest coverage ratio decreased to 4.59 as of September 30, 2024, which may indicate a potential strain on the company's ability to cover its interest expenses efficiently. A ratio below 1 would suggest that the company is not generating enough earnings to cover its interest payments.

The significant increase in the interest coverage ratio to 28.52 as of December 31, 2024, is a positive indication, showing a substantial improvement in the company's ability to meet its interest obligations. This could be due to increased earnings or a decrease in interest expenses during this period.

Overall, the fluctuation in Atlas Energy Solutions Inc.'s interest coverage ratios over the three periods analyzed indicates some variability in the company's ability to cover its interest expenses, with improvements seen towards the end of the year. Monitoring this ratio is crucial for assessing the company's financial health and sustainability.

Peer comparison

Dec 31, 2024