Crescent Energy Co (CRGY)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 243,293 | 219,445 | 145,518 | 236,683 | 157,633 | 372,821 | 424,624 | 228,949 | 183,818 |
| Interest expense (ttm) | US$ in thousands | 190,044 | 170,404 | 159,173 | 145,807 | 130,067 | 114,924 | 108,733 | 95,937 | 81,448 |
| Interest coverage | 1.28 | 1.29 | 0.91 | 1.62 | 1.21 | 3.24 | 3.91 | 2.39 | 2.26 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $243,293K ÷ $190,044K
= 1.28
Interest coverage is a financial ratio that helps assess a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Analyzing Crescent Energy Co's interest coverage ratio over the past nine quarters, we observe fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio ranged from a low of 0.91 in March 2024 to a high of 3.91 in March 2023.
The interest coverage ratio of below 1 in March 2024 (0.91) suggests that Crescent Energy Co's operating income was not sufficient to cover its interest expenses during that period, potentially indicating financial stress. However, the company's interest coverage improved in subsequent quarters, reaching a ratio of 3.91 in March 2023, indicating a significant improvement in its ability to cover interest payments.
Overall, the fluctuating trend in Crescent Energy Co's interest coverage ratio may signal varying levels of financial stability and operational efficiency. It is important for investors and stakeholders to closely monitor these ratios to assess the company's financial health and debt repayment capacity.
Peer comparison
Sep 30, 2024