Black Hills Corporation (BKH)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	503,000	476,230	498,201	491,117	472,700	466,193	447,901	456,774	455,244	439,196	449,590	444,467	409,429	421,405	413,766	413,433	428,303	423,711	412,028	399,096
Interest expense (ttm)	US$ in thousands	181,700	180,891	174,768	169,835	167,900	174,344	170,447	166,233	160,989	155,760	153,784	153,400	152,404	150,501	148,418	145,514	143,470	137,494	137,173	137,466
Interest coverage		2.77	2.63	2.85	2.89	2.82	2.67	2.63	2.75	2.83	2.82	2.92	2.90	2.69	2.80	2.79	2.84	2.99	3.08	3.00	2.90

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $503,000K ÷ $181,700K
= 2.77

The interest coverage ratio of Black Hills Corporation over the reported periods shows a fluctuating trend. The ratio ranged from a low of 2.63 to a high of 3.08 during the observed timeframe. This indicates that the company's ability to cover its interest expense with its earnings varied over time.

A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating income. Conversely, a lower ratio implies a higher risk of default on interest payments.

Black Hills Corporation's interest coverage ratio averaged around 2.80, which suggests that the company, on average, generates enough operating income to cover its interest expenses nearly three times. It is important for investors and creditors to monitor this ratio to assess the company's financial health and ability to service its debt obligations.