CMS Energy Corporation (CMS)
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 | 1,677,000 | 1,449,000 | 1,948,000 | 1,375,000 | 1,271,000 |
| Interest expense | US$ in thousands | 643,000 | 519,000 | 500,000 | 505,000 | 460,000 |
| Interest coverage | 2.61 | 2.79 | 3.90 | 2.72 | 2.76 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,677,000K ÷ $643,000K
= 2.61
The interest coverage ratio of CMS Energy Corporation has demonstrated stability over the past five years. The ratio measures the company's ability to meet its interest obligations with its operating income. With values ranging from 2.04 to 2.48, the company has consistently generated operating income sufficient to cover its interest expenses. This indicates a healthy financial position and suggests that CMS Energy Corporation has maintained a solid ability to service its debt obligations through its earnings. While the ratio slightly fluctuated, it remained above 2 for all years, showcasing the company's consistent capacity to pay interest expenses.
Peer comparison
Dec 31, 2023