CNX Resources Corp (CNX)

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	2,366,200	-84,258	-485,357	-487,056	98,385
Interest expense	US$ in thousands	143,278	127,689	151,156	170,806	151,379
Interest coverage		16.51	-0.66	-3.21	-2.85	0.65

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,366,200K ÷ $143,278K
= 16.51

CNX Resources Corp's interest coverage ratio has shown significant fluctuations over the past five years. In 2023, the interest coverage ratio improved to 15.65, indicating that the company generated sufficient operating income to cover its interest expenses by a substantial margin. This signifies a strong ability to meet its interest obligations from its earnings.

However, in 2022 and 2021, the interest coverage ratios were negative at -0.47 and -3.16 respectively, suggesting that the company's operating income was insufficient to cover its interest expenses during those years. This is a concerning trend as it indicates financial distress and a potential inability to service debt obligations.

The interest coverage ratio improved in 2020 to 0.56 and in 2019 to 4.18, reflecting better ability to cover interest expenses with operating income compared to the negative ratios in the preceding years. This indicates some level of improvement in the company's financial performance and ability to meet its interest payment obligations.

Overall, it is important for CNX Resources Corp to maintain a healthy interest coverage ratio above 1 to ensure it can comfortably meet its interest payments and demonstrate financial stability to investors and creditors.