Chesapeake Utilities Corporation (CPK)
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 | 222,718 | 209,193 | 195,399 | 185,950 | 160,838 | 150,115 | 144,995 | 143,477 | 143,786 | 137,121 | 138,474 | 135,755 | 132,377 | 133,641 | 133,008 | 124,225 | 114,579 | 107,941 | 102,295 | 104,744 |
| Interest expense (ttm) | US$ in thousands | 68,400 | 66,540 | 56,594 | 46,745 | 36,951 | 28,224 | 27,388 | 26,249 | 24,356 | 22,405 | 21,140 | 20,369 | 20,135 | 21,447 | 21,056 | 21,056 | 21,765 | 21,094 | 21,913 | 22,514 |
| Interest coverage | 3.26 | 3.14 | 3.45 | 3.98 | 4.35 | 5.32 | 5.29 | 5.47 | 5.90 | 6.12 | 6.55 | 6.66 | 6.57 | 6.23 | 6.32 | 5.90 | 5.26 | 5.12 | 4.67 | 4.65 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $222,718K ÷ $68,400K
= 3.26
The interest coverage ratio for Chesapeake Utilities Corporation has shown a relatively stable trend over the past few years, starting at 4.65 in March 2020 and gradually increasing to a peak of 6.66 in March 2022. This indicates that the company's ability to cover its interest expenses improved during this period.
However, from June 2022 onwards, the interest coverage ratio started to decline, reaching 3.26 by December 2024. This downward trend suggests that Chesapeake Utilities Corporation may be facing challenges in generating sufficient earnings to cover its interest payments.
It is important for investors and stakeholders to closely monitor the company's interest coverage ratio, as a decreasing trend could potentially signal financial distress and raise concerns about the company's ability to meet its debt obligations. Further analysis of the company's financial health and cash flow position may be necessary to accurately assess its overall financial stability.
Peer comparison
Dec 31, 2024