CenterPoint Energy Inc (CNP)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,052,000 | 1,788,000 | 1,941,000 | 1,307,000 | 1,092,000 |
| Interest expense | US$ in thousands | 838,000 | 701,000 | 524,000 | 529,000 | 501,000 |
| Interest coverage | 2.45 | 2.55 | 3.70 | 2.47 | 2.18 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,052,000K ÷ $838,000K
= 2.45
CenterPoint Energy Inc's interest coverage ratio has shown varying trends over the past few years. As of December 31, 2020, the interest coverage ratio was 2.18, indicating that the company's operating income was able to cover its interest expenses 2.18 times over.
By December 31, 2021, the interest coverage ratio improved to 2.47, showing a slight increase in the company's ability to cover its interest payments. This improvement suggests a better financial position or a decrease in interest expenses.
The ratio continued to strengthen by December 31, 2022, reaching a level of 3.70. This significant increase indicates that CenterPoint Energy had a substantial increase in its operating income relative to its interest expenses, signaling a robust financial position.
However, by December 31, 2023, the interest coverage ratio dropped to 2.55, indicating a slight decline in the company's ability to cover its interest obligations compared to the previous year.
By December 31, 2024, the ratio further decreased to 2.45, showing a continued decline in the company's ability to cover its interest payments.
Overall, CenterPoint Energy's interest coverage ratio has fluctuated over the years, indicating varying levels of ability to meet interest obligations. Investors and creditors should continue to monitor this ratio to assess the company's financial health and leverage position.
Peer comparison
Dec 31, 2024