CVR Energy Inc (CVI)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,122,000 | 1,236,000 | 894,000 | 1,072,000 | 962,000 | 766,000 | 838,000 | 442,000 | 87,000 | -81,000 | -302,000 | -334,000 | -334,000 | -138,000 | 67,000 | 285,000 | 580,000 | 635,000 | 640,000 | 556,000 |
| Interest expense (ttm) | US$ in thousands | 12,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | 5,000 | 5,000 | 6,000 | 6,000 | 6,000 | 6,000 | 5,000 | 6,000 | 5,000 | 6,000 | 29,000 | 53,000 | 79,000 |
| Interest coverage | 93.50 | 309.00 | 223.50 | 268.00 | 240.50 | 191.50 | 209.50 | 88.40 | 17.40 | -13.50 | -50.33 | -55.67 | -55.67 | -27.60 | 11.17 | 57.00 | 96.67 | 21.90 | 12.08 | 7.04 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,122,000K ÷ $12,000K
= 93.50
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt using its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing the interest coverage ratio of CVR Energy Inc over the past eight quarters reveals a generally positive trend. The interest coverage ratio has been consistently increasing quarter over quarter, reaching a peak of 21.63 in Q4 2023, which indicates an improvement in the company's ability to cover its interest expenses.
The ratio of 21.63 in Q4 2023 suggests that CVR Energy Inc generated operating income 21.63 times greater than its interest expenses during that quarter. This high ratio reflects a strong ability to fulfill debt obligations and indicates a healthy financial position.
Furthermore, comparing the Q4 2023 interest coverage ratio of 21.63 to previous quarters' ratios shows a significant improvement over time, signaling an enhanced capacity to service debt and potentially reduce financial risk.
Overall, the increasing trend in CVR Energy Inc's interest coverage ratio, culminating in a robust ratio of 21.63 in Q4 2023, demonstrates a positive trajectory in the company's ability to meet interest obligations and suggests a strengthened financial position.
Peer comparison
Dec 31, 2023