DTE Energy Company (DTE)
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 | 2,321,000 | 2,357,000 | 1,787,000 | 1,407,000 | 2,006,000 |
| Interest expense | US$ in thousands | 951,000 | 791,000 | 675,000 | 630,000 | 601,000 |
| Interest coverage | 2.44 | 2.98 | 2.65 | 2.23 | 3.34 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,321,000K ÷ $951,000K
= 2.44
The interest coverage ratio for DTE Energy Company has shown some fluctuations over the years. In 2020, the interest coverage stood at 3.34, indicating that the company was generating enough operating income to cover its interest expenses approximately 3.34 times. However, the ratio declined to 2.23 in 2021, which may suggest that the company's ability to cover its interest payments weakened during that period.
There was a slight improvement in the interest coverage ratio to 2.65 in 2022, followed by a further increase to 2.98 in 2023, showing signs of recovery. However, by 2024, the ratio dropped again to 2.44, which could indicate a renewed challenge in meeting interest obligations with operating income.
Overall, the trend in DTE Energy Company's interest coverage suggests some variability in its ability to comfortably service its interest payments over the years, with periods of improvement interspersed with periods of decline. It would be important for stakeholders to monitor this ratio closely to assess the company's financial health and debt servicing capacity.
Peer comparison
Dec 31, 2024