Chesapeake Utilities Corporation (CPK)
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 | 152,241 | 148,073 | 147,522 | 147,398 | 147,985 | 140,465 | 141,300 | 136,278 | 132,472 | 132,776 | 126,043 | 117,353 | 110,456 | 108,088 | 107,757 | 109,651 | 108,492 | 102,915 | 101,862 | 97,611 |
| Interest expense (ttm) | US$ in thousands | 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 | 21,093 | 21,912 | 22,410 | 22,224 | 20,965 | 19,919 | 18,248 |
| Interest coverage | 4.12 | 5.25 | 5.39 | 5.62 | 6.08 | 6.27 | 6.68 | 6.69 | 6.58 | 6.19 | 5.99 | 5.57 | 5.07 | 5.12 | 4.92 | 4.89 | 4.88 | 4.91 | 5.11 | 5.35 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $152,241K ÷ $36,951K
= 4.12
The interest coverage ratio of Chesapeake Utilities Corp has shown a consistent trend of remaining above 5.0 over the past eight quarters, indicating the company's strong ability to meet its interest obligations using its operating income. The ratios ranged from a low of 4.36 in Q4 2023 to a high of 6.60 in Q1 2022, with the most recent quarters showing a slight decline but still at healthy levels. This suggests that the company has sufficient earnings to cover its interest expenses, which is a positive indicator of its financial stability and ability to service its debt. Overall, the consistent and relatively high interest coverage ratios reflect a stable financial position for Chesapeake Utilities Corp.
Peer comparison
Dec 31, 2023