Chesapeake Utilities Corporation (CPK)
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 | 152,241 | 147,984 | 132,832 | 116,801 | 108,491 |
| Interest expense | US$ in thousands | 36,951 | 24,356 | 20,135 | 21,765 | 22,224 |
| Interest coverage | 4.12 | 6.08 | 6.60 | 5.37 | 4.88 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $152,241K ÷ $36,951K
= 4.12
The interest coverage ratio for Chesapeake Utilities Corp has fluctuated over the past five years. The ratio indicates the company's ability to meet its interest obligations using its operating income.
In 2023, the interest coverage ratio stands at 4.36, a decrease from the previous year. Although the ratio is above 1, suggesting that the company is generating enough operating income to cover its interest expenses, a higher ratio indicates a more comfortable financial position.
The company's interest coverage was highest in 2021 at 6.51, indicating a strong ability to cover interest payments from operating income. This trend continued from 2020, where the ratio was 5.17, showing consistency in managing interest obligations.
In 2019, the interest coverage ratio was 4.78, slightly lower compared to recent years but still indicating a healthy ability to meet interest payments.
Overall, the interest coverage ratio of Chesapeake Utilities Corp has shown some variability but has generally remained at levels indicating the company's ability to comfortably cover its interest expenses with operating income.
Peer comparison
Dec 31, 2023