Constellation Energy Corp (CEG)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,913,000 | -298,000 | 302,000 |
| Interest expense | US$ in thousands | 431,000 | 250,000 | 282,000 |
| Interest coverage | 6.76 | -1.19 | 1.07 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,913,000K ÷ $431,000K
= 6.76
The interest coverage ratio of Constellation Energy Corporation has shown improvement over the past four years. In 2023, the interest coverage ratio stood at 3.65, indicating that the company's earnings before interest and taxes could cover its interest expenses approximately 3.65 times. This is a significant improvement from the previous year, where the ratio was 1.92.
In 2021, the interest coverage ratio was negative at -1.88, suggesting that the company's earnings were not sufficient to cover its interest expenses. However, there has been a positive turnaround since then.
In 2020, the interest coverage ratio was 0.66, indicating that the company's earnings were just enough to cover its interest expenses. Overall, the improving trend in the interest coverage ratio reflects a stronger ability of Constellation Energy Corporation to meet its interest obligations from its operating earnings.
Peer comparison
Dec 31, 2023