Dominion Energy Inc (D)
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 | 4,069,000 | 3,694,000 | 3,260,000 | 2,605,000 | 4,099,000 |
| Interest expense | US$ in thousands | 1,887,000 | 1,631,000 | 945,000 | 1,354,000 | 1,377,000 |
| Interest coverage | 2.16 | 2.26 | 3.45 | 1.92 | 2.98 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,069,000K ÷ $1,887,000K
= 2.16
Dominion Energy Inc's interest coverage has shown fluctuations over the past five years. In December 2020, the interest coverage ratio was 2.98, indicating that the company was able to cover its interest expenses nearly three times with its operating income. However, by December 2021, the ratio decreased to 1.92, suggesting a decline in the company's ability to cover its interest payments.
In December 2022, the interest coverage ratio improved to 3.45, reflecting a stronger ability to meet interest obligations from operating earnings. This positive trend continued into December 2023 with an interest coverage ratio of 2.26, although slightly lower than the previous year. In December 2024, the ratio further decreased to 2.16, indicating a slight weakening in the company's ability to cover interest expenses.
Overall, Dominion Energy Inc's interest coverage ratio has shown variability over the years, with some fluctuations indicating changes in the company's ability to manage its interest obligations with operating income. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and debt repayment capabilities.
Peer comparison
Dec 31, 2024