CNX Resources Corp (CNX)
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 | -186,485 | 758,148 | 749,456 | 1,446,271 | 2,366,203 | 2,981,437 | 2,694,440 | 2,100,873 | -84,259 | -431,858 | -1,393,994 | -1,878,569 | -485,353 | -1,127,513 | -161,069 | 117,392 | -487,057 | -1,073,622 | -642,721 | -271,162 |
| Interest expense (ttm) | US$ in thousands | 150,595 | 151,329 | 148,797 | 144,983 | 143,278 | 141,164 | 140,124 | 136,355 | 127,688 | 129,735 | 133,328 | 141,853 | 151,156 | 151,525 | 151,502 | 158,182 | 170,805 | 170,223 | 170,707 | 164,603 |
| Interest coverage | -1.24 | 5.01 | 5.04 | 9.98 | 16.51 | 21.12 | 19.23 | 15.41 | -0.66 | -3.33 | -10.46 | -13.24 | -3.21 | -7.44 | -1.06 | 0.74 | -2.85 | -6.31 | -3.77 | -1.65 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-186,485K ÷ $150,595K
= -1.24
The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a company is more capable of servicing its debt obligations.
Analyzing the interest coverage of CNX Resources Corp over the past few years, we observe a fluctuating trend. The company experienced negative or low interest coverage ratios from March 2020 to March 2023, indicating financial distress and potential difficulty in meeting interest payments.
However, there is a significant improvement in CNX Resources Corp's interest coverage ratio from March 2023 onwards, with ratios consistently above 5x. This improvement suggests that the company's operating profits are now more than sufficient to cover its interest expenses, reflecting a healthier financial position.
It is essential for investors and stakeholders to monitor the interest coverage ratio of CNX Resources Corp continuously to assess its ability to manage debt and meet financial obligations in the future.
Peer comparison
Dec 31, 2024