Peabody Energy Corp (BTU)
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 | 537,200 | 746,900 | 772,700 | 816,300 | 1,153,800 | 1,481,600 | 1,723,700 | 1,879,600 | 1,378,100 | 1,347,800 | 899,900 | 470,000 | 523,400 | -135,400 | -133,300 | -1,662,100 | -1,712,300 | -1,854,000 | -1,858,700 | -265,600 |
| Interest expense (ttm) | US$ in thousands | 46,900 | 49,400 | 53,500 | 56,100 | 59,800 | 75,000 | 95,000 | 119,300 | 140,300 | 150,900 | 162,600 | 170,400 | 183,400 | 180,800 | 170,200 | 159,100 | 139,800 | 139,100 | 139,600 | 141,300 |
| Interest coverage | 11.45 | 15.12 | 14.44 | 14.55 | 19.29 | 19.75 | 18.14 | 15.76 | 9.82 | 8.93 | 5.53 | 2.76 | 2.85 | -0.75 | -0.78 | -10.45 | -12.25 | -13.33 | -13.31 | -1.88 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $537,200K ÷ $46,900K
= 11.45
Peabody Energy Corp's interest coverage ratio has shown significant fluctuations over the reported periods. The interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt.
Starting from negative values in March 2020 and consistently staying negative until June 2022, Peabody Energy Corp's interest coverage ratio indicates that the company was unable to cover its interest expenses with its operating income during that period. The negative values suggest a potentially risky financial position where the company may struggle to meet its debt obligations.
However, there was a noticeable turnaround in the company's interest coverage from December 2022 onwards. The ratio improved significantly, reaching positive values, indicating a more favorable position. The interest coverage ratio surpassed 1, suggesting that Peabody Energy Corp's operating income was more than sufficient to cover its interest expenses during these periods.
Overall, the positive trend in the interest coverage ratio from December 2022 to December 2024 indicates an improvement in Peabody Energy Corp's ability to handle its interest payments with its operating income. This enhancement could signify better financial health and reduced risk of default on debt obligations.
Peer comparison
Dec 31, 2024