California Water Service Group (CWT)

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 77,135 68,186 89,658 100,998 127,660 111,826 118,032 132,989 126,770 141,351 176,261 146,508 136,666 131,988 77,493 92,013 99,412 105,592 101,354 101,180
Interest expense (ttm) US$ in thousands 47,019 45,883 44,528 43,035 42,244 41,342 41,826 41,718 40,983 42,069 40,658 39,707 38,983 37,747 36,235 37,305 37,808 36,442 37,889 36,996
Interest coverage 1.64 1.49 2.01 2.35 3.02 2.70 2.82 3.19 3.09 3.36 4.34 3.69 3.51 3.50 2.14 2.47 2.63 2.90 2.68 2.73

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $77,135K ÷ $47,019K
= 1.64

The interest coverage ratio for California Water Service Group has fluctuated over the past eight quarters. It peaked at 3.48 in Q1 2022 and has been gradually decreasing since then, reaching its lowest point of 1.63 in Q3 2023. The ratio measures the company's ability to cover its interest expenses with its operating income. A higher ratio indicates a greater ability to meet interest obligations, while a lower ratio may signal potential financial strain. Although the recent ratios are above 1, suggesting the company can cover its interest payments, the decreasing trend warrants close monitoring to assess the firm's financial health and ability to service its debt.