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.
Peer comparison
Dec 31, 2024