DTE Energy Company (DTE)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,357,000 | 1,787,000 | 1,407,000 | 2,006,000 | 1,808,000 |
| Interest expense | US$ in thousands | 791,000 | 675,000 | 630,000 | 601,000 | 568,000 |
| Interest coverage | 2.98 | 2.65 | 2.23 | 3.34 | 3.18 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,357,000K ÷ $791,000K
= 2.98
The interest coverage ratio for DTE Energy Co. has exhibited variability over the past five years. The ratio indicates the company's ability to cover its interest expenses with its operating income.
In 2023, the interest coverage ratio improved to 3.08, signaling that the company generated sufficient operating income to cover its interest obligations. This represents a positive trend from the previous year when the ratio was 2.75.
The interest coverage ratio was 2.51 in 2021, indicating a lower ability to cover interest expenses compared to the prior year. However, the ratio rebounded in 2020 to a healthier level of 3.16, suggesting improved financial health.
In 2019, the interest coverage ratio was 2.94, showing a stable performance in managing interest payments relative to operating income.
Overall, while there have been fluctuations in DTE Energy Co.'s interest coverage ratio over the past five years, the company has generally maintained a satisfactory ability to meet its interest obligations with its operating income.
Peer comparison
Dec 31, 2023