Peabody Energy Corp (BTU)
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 | 1,074,700 | 1,381,600 | 432,200 | -1,728,300 | -21,300 |
| Interest expense | US$ in thousands | 59,800 | 140,300 | 183,400 | 139,800 | 144,000 |
| Interest coverage | 17.97 | 9.85 | 2.36 | -12.36 | -0.15 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,074,700K ÷ $59,800K
= 17.97
The interest coverage ratio of Peabody Energy Corp has shown significant improvement over the past five years. In 2023, the interest coverage ratio stands at 17.97, indicating the company's ability to cover its interest expenses nearly 18 times over from its operating income. This represents a substantial increase compared to the ratios of 9.85 in 2022 and 2.36 in 2021.
The negative interest coverage ratios in 2020 and 2019 (-12.36 and -0.15, respectively) signify that the company's operating income was insufficient to cover its interest expenses during those years. However, the positive trend in recent years demonstrates a strengthening ability to meet its interest obligations.
Overall, the improving interest coverage ratio suggests that Peabody Energy Corp has enhanced its financial stability and operational efficiency, which is crucial for its long-term sustainability and growth.
Peer comparison
Dec 31, 2023