California Water Service Group (CWT)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 281,031 276,319 236,946 196,787 85,887 85,574 107,948 119,422 145,352 130,651 130,788 145,186 139,248 152,127 196,275 161,152 140,052 136,990 80,036 98,395
Interest expense (ttm) US$ in thousands 57,550 55,684 54,880 53,548 50,495 48,571 47,098 45,399 44,342 44,550 44,462 44,218 43,214 42,948 42,208 41,936 41,862 41,298 40,058 40,831
Interest coverage 4.88 4.96 4.32 3.67 1.70 1.76 2.29 2.63 3.28 2.93 2.94 3.28 3.22 3.54 4.65 3.84 3.35 3.32 2.00 2.41

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $281,031K ÷ $57,550K
= 4.88

The interest coverage ratio for California Water Service Group has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates the company's ability to meet its interest obligations from its operating income.

From March 2020 to June 2020, the interest coverage ratio decreased from 2.41 to 2.00, reflecting a decrease in the company's ability to cover its interest expenses. However, from June 2020 to December 2020, the ratio improved significantly, reaching 3.35, indicating a better ability to cover interest payments.

During the following quarters up to June 2021, the interest coverage ratio continued to increase, reaching a peak of 4.65. This suggests that the company's operating income was more than sufficient to cover its interest expenses during this period.

Subsequently, the ratio declined from June 2021 to December 2021, indicating a slight decrease in the company's ability to cover interest payments. From March 2022 to September 2022, the ratio remained relatively stable around the 3.00 mark.

However, there was a decline in the interest coverage ratio from September 2022 to December 2024, with the ratio ranging between 1.70 and 4.96. This fluctuation may indicate changes in the company's operating performance and its ability to generate enough income to cover interest costs.

Overall, the interest coverage ratio for California Water Service Group has shown variability, which may reflect fluctuations in the company's financial performance and ability to meet its interest obligations. It is important for investors and stakeholders to monitor these ratios to assess the company's financial health and risk profile.