CSX Corporation (CSX)
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 | 5,387,000 | 5,729,000 | 5,890,000 | 5,233,000 | 4,381,000 |
| Interest expense | US$ in thousands | 832,000 | 809,000 | 742,000 | 722,000 | 754,000 |
| Interest coverage | 6.47 | 7.08 | 7.94 | 7.25 | 5.81 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,387,000K ÷ $832,000K
= 6.47
CSX Corporation's interest coverage ratio has shown a generally positive trend over the years based on the data provided. The ratio increased from 5.81 in December 31, 2020, to 7.25 in December 31, 2021, and further improved to 7.94 in December 31, 2022. However, there was a slight decline to 7.08 in December 31, 2023, followed by a decrease to 6.47 in December 31, 2024.
Overall, the interest coverage ratio indicates the company's ability to meet its interest payment obligations from its operating income. Higher ratios suggest that CSX Corporation is more capable of covering its interest expenses with its earnings, which is generally seen as a positive sign of financial health and stability. Nonetheless, the slight decline in the ratio in the last two years may warrant further monitoring to ensure that the company's financial position remains robust.
Peer comparison
Dec 31, 2024