Core Natural Resources, Inc. (CNR)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 352,839 | 498,150 | 508,717 | 649,088 | 807,197 | 871,668 | 946,763 | 896,946 | 621,077 | 550,947 | 209,448 | 58,279 | 98,749 | -46,053 | 197,045 | 171,555 | 144,759 | 149,533 | 69,474 | 146,566 |
| Interest expense (ttm) | US$ in thousands | 22,192 | 20,309 | 22,290 | 24,452 | 29,325 | 37,284 | 42,601 | 48,567 | 52,640 | 55,284 | 59,367 | 62,433 | 63,342 | 62,563 | 98,037 | 96,572 | 96,982 | 98,136 | 62,215 | 63,539 |
| Interest coverage | 15.90 | 24.53 | 22.82 | 26.55 | 27.53 | 23.38 | 22.22 | 18.47 | 11.80 | 9.97 | 3.53 | 0.93 | 1.56 | -0.74 | 2.01 | 1.78 | 1.49 | 1.52 | 1.12 | 2.31 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $352,839K ÷ $22,192K
= 15.90
Core Natural Resources, Inc.'s interest coverage ratio has fluctuated over the past few years. As of December 31, 2024, the interest coverage ratio stood at 15.90. This indicates that the company's operating income was 15.9 times higher than its interest expenses for that period.
The trend shows variations in the company's ability to meet its interest obligations. From March 31, 2020, to September 30, 2021, there was a general decline in the interest coverage ratio, reaching a negative figure in September 30, 2021, which indicates the company struggled to cover its interest expenses with its operating income during that period.
However, from June 30, 2022, there was a significant improvement in the interest coverage ratio, reaching double-digit levels by December 31, 2023, and maintaining a strong position into December 31, 2024. This suggests that Core Natural Resources, Inc. has significantly increased its operating profitability or reduced its interest expenses during this time frame.
Overall, a higher interest coverage ratio indicates that the company is in a better position to meet its interest obligations and suggests a lower risk of default on its debt obligations. Core Natural Resources, Inc. showed a positive trend in this aspect, reflecting an improvement in its financial health and ability to handle its debt commitments.
Peer comparison
Dec 31, 2024