CVR Energy Inc (CVI)
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 | 58,000 | 1,123,000 | 963,000 | 87,000 | -333,000 |
| Interest expense | US$ in thousands | 7,000 | 12,000 | 5,000 | 5,000 | 6,000 |
| Interest coverage | 8.29 | 93.58 | 192.60 | 17.40 | -55.50 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $58,000K ÷ $7,000K
= 8.29
The interest coverage ratio for CVR Energy Inc has shown significant fluctuations over the years based on the provided data. As of December 31, 2020, the interest coverage ratio was -55.50, indicating that the company's earnings before interest and taxes were insufficient to cover its interest expenses, reflecting a risky financial position. However, by December 31, 2022, the interest coverage ratio improved substantially to 192.60, signaling a strong ability to meet its interest obligations comfortably. This improvement was further sustained in the following years, with ratios of 93.58 by December 31, 2023, and 8.29 by December 31, 2024. Despite the dip in 2024, the overall trend indicates a positive trajectory in the company's ability to cover its interest expenses.
Peer comparison
Dec 31, 2024