CNX Resources Corp (CNX)

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	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	98,386	494,577	509,162	315,092
Interest expense (ttm)	US$ in thousands	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	151,379	147,550	144,868	143,154
Interest coverage		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	0.65	3.35	3.51	2.20

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,366,203K ÷ $143,278K
= 16.51

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a greater ability to cover interest expenses.

Based on the quarterly data provided, CNX Resources Corp's interest coverage has shown a significant improvement over the past year. In Q4 2023, the interest coverage ratio was 15.65, which indicates that the company generated operating income that was 15.65 times greater than its interest expense for that quarter.

The company's interest coverage has been consistently positive from Q1 2023 to Q4 2023, reflecting a strong ability to meet its interest obligations. This is a positive trend compared to the negative interest coverage in the previous quarters of 2022.

Overall, CNX Resources Corp's improving interest coverage ratio suggests that the company's operational performance has been able to sufficiently cover its interest expenses, indicating a lower financial risk in terms of meeting its debt obligations.