CVR Energy Inc (CVI)
Interest coverage
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 154,000 | 578,000 | 915,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 15,000 | 14,000 | 13,000 | 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 |
| Interest coverage | 10.27 | 41.29 | 70.38 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $154,000K ÷ $15,000K
= 10.27
Interest coverage is a financial ratio that indicates a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio suggests that the company is more capable of servicing its debt obligations.
Based on the data provided for CVR Energy Inc, the interest coverage ratio fluctuated significantly over the reported periods. In December 2019, the interest coverage ratio was robust at 96.67, indicating a strong ability to cover interest expenses. However, the ratio declined in subsequent periods, reaching negative values by September 2020. Negative values signify that the company's operating income was insufficient to cover its interest expenses during these periods.
The trend continued with negative interest coverage ratios persisting until March 2022 when a marked improvement was observed. Subsequently, there was a consistent increase in the interest coverage ratio, peaking at 309.00 by September 2023. This substantial improvement indicates a significant enhancement in CVR Energy Inc's ability to cover its interest obligations.
However, the interest coverage ratio decreased to 93.50 by December 2023 and further declined to 10.27 by December 2024, suggesting a potential strain on the company's ability to service its interest expenses. It is essential for investors and stakeholders to monitor this ratio closely in future periods to assess the company's financial health and debt servicing capabilities.
Peer comparison
Dec 31, 2024