Black Hills Corporation (BKH)
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 | 491,100 | 455,700 | 444,581 | 396,317 | 403,996 |
| Interest expense | US$ in thousands | 181,700 | 167,900 | 161,000 | 152,404 | 143,470 |
| Interest coverage | 2.70 | 2.71 | 2.76 | 2.60 | 2.82 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $491,100K ÷ $181,700K
= 2.70
The interest coverage ratio for Black Hills Corporation has been relatively stable over the past five years, ranging between 2.60 and 2.82. This indicates that the company's ability to meet its interest obligations with its earnings remains consistent. A ratio above 1 signifies that the company generates enough operating income to cover its interest expense, with higher values suggesting better financial health. Black Hills Corporation's interest coverage ratios suggest that it has sufficient earnings to comfortably meet its interest payments. However, it is essential for the company to continue monitoring and managing its interest expense to maintain this level of financial stability in the long run.
Peer comparison
Dec 31, 2024