CenterPoint Energy Inc (CNP)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,760,000 | 1,793,000 | 1,659,000 | 1,630,000 | 1,566,000 | 1,548,000 | 1,442,000 | 1,387,000 | 1,363,000 | 1,312,000 | 1,336,000 | 1,275,000 | 1,039,000 | 1,056,000 | 1,111,000 | 1,105,000 | 1,099,000 | 964,000 | 833,000 | 791,000 |
| Interest expense (ttm) | US$ in thousands | 701,000 | 638,000 | 574,000 | 517,000 | 524,000 | 553,000 | 446,000 | 344,000 | 194,000 | 32,000 | -239,000 | -119,000 | 20,000 | 22,000 | 289,000 | 295,000 | 161,000 | 168,000 | 176,000 | 54,000 |
| Interest coverage | 2.51 | 2.81 | 2.89 | 3.15 | 2.99 | 2.80 | 3.23 | 4.03 | 7.03 | 41.00 | — | — | 51.95 | 48.00 | 3.84 | 3.75 | 6.83 | 5.74 | 4.73 | 14.65 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,760,000K ÷ $701,000K
= 2.51
Centerpoint Energy Inc.'s interest coverage has shown a positive trend over the past eight quarters, indicating the company's improved ability to meet its interest obligations. The interest coverage ratio has varied between 67.32 and 184.33 during this period.
Notably, the interest coverage ratio has consistently been above 1, indicating that Centerpoint Energy Inc. has generated enough operating income to cover its interest expenses. The increasing trend in the interest coverage ratio suggests that the company's profitability and earnings are growing at a healthy pace, providing a cushion to meet its interest payments.
Overall, the improving trend in Centerpoint Energy Inc.'s interest coverage ratio reflects a positive financial performance and indicates a lower risk of default on its debt obligations.
Peer comparison
Dec 31, 2023