CSX Corporation (CSX)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,332,000 | 5,514,000 | 5,419,000 | 5,480,000 | 5,578,000 | 5,706,000 | 5,982,000 | 6,079,000 | 5,908,000 | 5,841,000 | 5,663,000 | 5,394,000 | 5,241,000 | 5,038,000 | 4,800,000 | 4,302,000 | 4,381,000 | 4,368,000 | 4,524,000 | 5,011,000 |
| Interest expense (ttm) | US$ in thousands | 832,000 | 829,000 | 826,000 | 818,000 | 809,000 | 804,000 | 794,000 | 764,000 | 742,000 | 723,000 | 707,000 | 717,000 | 722,000 | 731,000 | 741,000 | 751,000 | 754,000 | 754,000 | 753,000 | 746,000 |
| Interest coverage | 6.41 | 6.65 | 6.56 | 6.70 | 6.89 | 7.10 | 7.53 | 7.96 | 7.96 | 8.08 | 8.01 | 7.52 | 7.26 | 6.89 | 6.48 | 5.73 | 5.81 | 5.79 | 6.01 | 6.72 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,332,000K ÷ $832,000K
= 6.41
CSX Corporation's interest coverage ratio has shown a generally stable trend over the reported periods, ranging from a low of 5.73 in March 31, 2021, to a high of 8.08 in September 30, 2022. The interest coverage ratio represents the company's ability to meet its interest obligations with its operating profits. A higher interest coverage ratio indicates a company's better ability to cover its interest expenses.
CSX Corporation's interest coverage ratio has generally remained above 6 during the reported periods, indicating that the company has been able to comfortably meet its interest payments. This suggests that the company has a healthy level of operating income relative to its interest expenses, providing a cushion against potential financial risks associated with servicing its debt.
The slight fluctuations in the interest coverage ratio over time may be influenced by various factors such as changes in interest rates, profitability, and debt levels. Overall, the trend of the interest coverage ratio for CSX Corporation reflects a relatively stable financial position in terms of its ability to cover interest expenses with its operating earnings.
Peer comparison
Dec 31, 2024