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.