Constellation Energy Corp (CEG)
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 | 4,657,000 | 3,672,000 | 2,889,000 | 2,499,000 | 1,725,000 | 1,673,000 | 427,000 | -665,000 | -270,000 | -842,000 | 293,000 | 876,000 | -436,000 | 608,000 | 698,000 | 830,000 | 2,046,000 | 1,828,000 | 1,453,000 | 1,309,000 |
| Interest expense (ttm) | US$ in thousands | 506,000 | 555,000 | 490,000 | 451,000 | 431,000 | 356,000 | 349,000 | 302,000 | 251,000 | 259,000 | 261,000 | 281,000 | 297,000 | 305,000 | 228,000 | 152,000 | 80,000 | 0 | 0 | 0 |
| Interest coverage | 9.20 | 6.62 | 5.90 | 5.54 | 4.00 | 4.70 | 1.22 | -2.20 | -1.08 | -3.25 | 1.12 | 3.12 | -1.47 | 1.99 | 3.06 | 5.46 | 25.58 | — | — | — |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,657,000K ÷ $506,000K
= 9.20
The interest coverage ratio measures a company's ability to meet its interest expenses on outstanding debt. A higher ratio indicates that the company is more capable of fulfilling its interest obligations.
Looking at the interest coverage data provided for Constellation Energy Corp, we observe the following trends:
- The interest coverage ratio was not available (`—`) for the periods ending March 31, June 30, and September 30, 2020.
- As of December 31, 2020, the interest coverage ratio was 25.58, reflecting a strong ability to cover interest payments.
- However, there was a notable decrease in the interest coverage ratio to 5.46 by March 31, 2021, indicating a potential decline in the company's ability to cover its interest expenses.
- This downward trend continued, with the ratio dropping to 1.99 by September 30, 2021, and turning negative (-1.47) by December 31, 2021, suggesting financial strain in meeting interest obligations.
- The interest coverage ratio remained erratic in the subsequent periods, with varying positive and negative values until September 30, 2023.
- From December 31, 2023, onward, there was a gradual improvement in the interest coverage ratio, reaching 9.20 by the end of December 31, 2024.
Overall, the interest coverage ratio for Constellation Energy Corp has exhibited fluctuations over the analyzed period, with periods of both strength and weakness. It is important for investors and stakeholders to closely monitor these ratios to gauge the company's financial health and its ability to manage debt obligations effectively.
Peer comparison
Dec 31, 2024