Peabody Energy Corp (BTU)
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 | 563,000 | 1,184,600 | 1,418,900 | 553,600 | -1,757,700 |
| Interest expense | US$ in thousands | 46,900 | 59,800 | 140,300 | 183,400 | 139,800 |
| Interest coverage | 12.00 | 19.81 | 10.11 | 3.02 | -12.57 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $563,000K ÷ $46,900K
= 12.00
Given the interest coverage ratios for Peabody Energy Corp over the years, we can observe a significant improvement in the company's ability to cover its interest expenses.
As of December 31, 2020, the interest coverage ratio was in a concerning position at -12.57, indicating that the company's operating income was insufficient to cover its interest payments. However, by December 31, 2021, the ratio improved markedly to 3.02, showing a positive trend in the company's ability to cover its interest expenses.
Subsequently, Peabody Energy Corp's interest coverage ratio continued to strengthen, reaching 10.11 as of December 31, 2022, and further improving to 19.81 by December 31, 2023. These higher ratios suggest a healthier financial position and the company's improved capacity to meet its interest obligations from its operating income.
Although there was a slight decrease in the interest coverage ratio to 12.00 by December 31, 2024, it still remained at a relatively strong level compared to the earlier years. Overall, the increasing trend in the interest coverage ratios reflects a positive development in Peabody Energy Corp's financial stability and ability to service its debt obligations.
Peer comparison
Dec 31, 2024