Peabody Energy Corp (BTU)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,102,400 | 1,434,200 | 1,673,600 | 1,865,300 | 1,379,300 | 1,317,900 | 895,900 | 449,500 | 501,100 | -128,000 | -158,000 | -1,680,100 | -1,744,200 | -1,869,100 | -1,879,900 | -293,700 | -21,300 | 487,900 | 486,200 | 318,100 |
| Interest expense (ttm) | US$ in thousands | 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 | 144,000 | 143,700 | 163,200 | 185,700 |
| Interest coverage | 18.43 | 19.12 | 17.62 | 15.64 | 9.83 | 8.73 | 5.51 | 2.64 | 2.73 | -0.71 | -0.93 | -10.56 | -12.48 | -13.44 | -13.47 | -2.08 | -0.15 | 3.40 | 2.98 | 1.71 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,102,400K ÷ $59,800K
= 18.43
The interest coverage ratio for Peabody Energy Corp has fluctuated significantly over the past few quarters. From March 2021 to September 2022, the company experienced a declining trend in its interest coverage ratio, dropping from 1.71 to 8.73. This suggests that the company may have been facing challenges in meeting its interest payment obligations with its operating income during this period.
However, starting from December 2022, there was a notable improvement in Peabody Energy's interest coverage ratio, reaching a peak of 19.12 in September 2023. This indicates that the company's ability to cover its interest expenses with its earnings has improved significantly.
Overall, it is essential for investors and stakeholders to closely monitor Peabody Energy Corp's interest coverage ratio going forward to assess the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2023