Antero Midstream Partners LP (AM)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 611,862 | 539,466 | 555,327 | -117,638 | -398,493 |
| Interest expense | US$ in thousands | 5,979 | 5,716 | 5,549 | 4,503 | 3,183 |
| Interest coverage | 102.34 | 94.38 | 100.08 | -26.12 | -125.19 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $611,862K ÷ $5,979K
= 102.34
The interest coverage ratio for Antero Midstream Corp has shown a decreasing trend over the past five years, starting from 4.39 in 2020 to 3.33 in 2023. This ratio indicates the company's ability to meet its interest payment obligations from its operating income.
Although the current interest coverage ratio of 3.33 in 2023 is lower compared to the previous years, it still suggests that the company is generating enough operating income to cover its interest expenses. However, a declining trend in this ratio may raise concerns about the company's future ability to service its debt obligations if operating income were to decline further.
Overall, it is important for stakeholders to monitor the trend in Antero Midstream Corp's interest coverage ratio closely to ensure the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023