California Water Service Group (CWT)

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 287,443 94,414 145,352 139,248 143,065
Interest expense US$ in thousands 57,550 49,819 44,342 43,214 41,862
Interest coverage 4.99 1.90 3.28 3.22 3.42

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $287,443K ÷ $57,550K
= 4.99

Based on the provided data, the interest coverage ratio for California Water Service Group has fluctuated over the years. In December 2020, the interest coverage ratio was 3.42, indicating the company's ability to cover its interest payments 3.42 times using its operating income.

However, there was a slight decrease in the ratio to 3.22 by December 2021, which may suggest a slight weakening in the company's ability to cover its interest expenses efficiently.

In December 2022, the interest coverage ratio improved to 3.28, showing a partial recovery in the company's ability to cover its interest obligations.

By December 2023, there was a notable decline in the interest coverage ratio to 1.90, indicating a potential strain on the company's ability to cover its interest costs.

Finally, in December 2024, the interest coverage ratio significantly improved to 4.99, reflecting a strong increase in the company's ability to service its debt obligations.

Overall, while the company experienced fluctuations in its interest coverage ratio over the years, it managed to achieve a strong interest coverage ratio by the end of 2024, which suggests an improved ability to meet its interest payment requirements efficiently.