Consol Energy Inc (CEIX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 807,197 | 621,077 | 98,749 | 55,403 | 147,004 |
| Interest expense | US$ in thousands | 29,325 | 52,640 | 63,342 | 61,186 | 66,464 |
| Interest coverage | 27.53 | 11.80 | 1.56 | 0.91 | 2.21 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $807,197K ÷ $29,325K
= 27.53
Consol Energy Inc's interest coverage ratio has shown significant improvement over the years, indicating its ability to meet interest payments from its operating earnings. The interest coverage ratio has steadily increased from -1.61 in 2020 to 49.02 in 2023, reflecting a positive trend in the company's ability to cover its interest expenses. This improvement suggests that Consol Energy Inc is effectively managing its debt obligations and generating sufficient earnings to cover its interest costs. It is notable that the interest coverage ratio was negative in 2020, indicating that the company's operating earnings were insufficient to cover its interest expenses. However, the substantial increase in the interest coverage ratio in the following years demonstrates a positive turnaround in Consol Energy Inc's financial performance and debt servicing capabilities.
Peer comparison
Dec 31, 2023