Crescent Energy Co (CRGY)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 59,921 | 398,733 | 234,571 | 221,479 | 494,683 | 371,730 | 1,105,399 | 1,330,600 | 616,146 | 724,862 | -47,932 | -628,033 | -375,697 | -656,556 | -907,789 | -168,555 |
| Interest expense (ttm) | US$ in thousands | 216,263 | 190,044 | 170,404 | 159,173 | 145,807 | 130,066 | 114,923 | 108,732 | 95,936 | 81,448 | 67,375 | 59,881 | 50,740 | 37,810 | 24,826 | 7,383 |
| Interest coverage | 0.28 | 2.10 | 1.38 | 1.39 | 3.39 | 2.86 | 9.62 | 12.24 | 6.42 | 8.90 | -0.71 | -10.49 | -7.40 | -17.36 | -36.57 | -22.83 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $59,921K ÷ $216,263K
= 0.28
Crescent Energy Co's interest coverage ratio has exhibited significant fluctuations over the past few years, as reflected in the data provided. The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt using its earnings before interest and taxes (EBIT).
Looking at the trend, the company had negative interest coverage ratios in the initial quarters of the data timeline, indicating that Crescent Energy Co was unable to cover its interest expenses with its operating earnings during those periods. A negative interest coverage ratio is generally a cause for concern, suggesting a high level of financial risk and potentially unsustainable debt levels.
However, starting from the second half of 2022, the interest coverage ratio turned positive, indicating an improvement in Crescent Energy Co's ability to cover its interest expenses. The ratio continued to increase moderately through 2023, reflecting a more stable financial position.
By the end of 2024, the interest coverage ratio had declined slightly but remained positive, indicating that the company was still generating adequate earnings to cover its interest obligations.
Overall, Crescent Energy Co's interest coverage ratio showed a volatile but improving trend over the period analyzed, with the company moving from negative ratios to positive ratios, signaling a potential strengthening of its financial position and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024