Core Natural Resources, Inc. (CNR)
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 | 352,839 | 807,197 | 621,077 | 98,749 | 51,944 |
| Interest expense | US$ in thousands | 22,192 | 29,325 | 52,640 | 63,342 | 61,186 |
| Interest coverage | 15.90 | 27.53 | 11.80 | 1.56 | 0.85 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $352,839K ÷ $22,192K
= 15.90
Core Natural Resources, Inc.'s interest coverage ratio has shown significant improvement over the years, reflecting the company's ability to meet its interest obligations. The ratio was only 0.85 as of December 31, 2020, indicating that the company's operating income was barely sufficient to cover its interest expenses. However, by December 31, 2021, the interest coverage ratio had increased to 1.56, signaling a modest improvement in the company's ability to service its debt.
The most notable improvement came in the following years, with the interest coverage ratio soaring to 11.80 by December 31, 2022, and further to 27.53 by December 31, 2023. These substantial increases suggest that Core Natural Resources, Inc. has significantly strengthened its financial position and has become more capable of comfortably meeting its interest payments from its operating income.
Although there was a slight decrease in the interest coverage ratio to 15.90 as of December 31, 2024, the overall trend indicates a positive development in the company's financial health and ability to manage its debt obligations effectively. Investors and creditors may view this improvement favorably, as it demonstrates the company's improved financial stability and lower risk of defaulting on its debt.
Peer comparison
Dec 31, 2024