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.
Peer comparison
Dec 31, 2024