Crescent Energy Co (CRGY)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 47,508 | 491,025 | 612,828 | -381,793 | -178,003 |
| Interest expense | US$ in thousands | 216,263 | 145,807 | 95,937 | 50,740 | 38,107 |
| Interest coverage | 0.22 | 3.37 | 6.39 | -7.52 | -4.67 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $47,508K ÷ $216,263K
= 0.22
Based on the data provided, Crescent Energy Co's interest coverage has fluctuated significantly over the past five years. In December 2020 and December 2021, the interest coverage ratios were negative at -4.67 and -7.52 respectively, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses during those periods.
However, there was a notable improvement in December 2022, with an interest coverage ratio of 6.39, suggesting that Crescent Energy Co's earnings were more than sufficient to cover its interest obligations at that time. Nevertheless, the company experienced a decrease in interest coverage in December 2023 and a substantial decline in December 2024, where the interest coverage ratio dropped to 0.22. This sharp decrease may raise concerns about the company's ability to service its debt obligations with its current level of earnings.
Overall, Crescent Energy Co's interest coverage has shown fluctuations, with periods of both strength and weakness. It is important for investors and stakeholders to closely monitor the company's financial performance and leverage levels to assess its ability to meet interest payments and manage its debt effectively.
Peer comparison
Dec 31, 2024