DTE Energy Company (DTE)
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 | 2,357,000 | 2,150,000 | 2,160,000 | 1,909,000 | 1,787,000 | 1,757,000 | 1,255,000 | 1,425,000 | 1,407,000 | 1,398,000 | 1,982,000 | 2,098,000 | 2,116,000 | 1,988,000 | 1,870,000 | 1,765,000 | 1,808,000 | 1,807,000 | 1,789,000 | 1,820,000 |
| Interest expense (ttm) | US$ in thousands | 791,000 | 772,000 | 743,000 | 712,000 | 675,000 | 639,000 | 624,000 | 629,000 | 630,000 | 628,000 | 621,000 | 634,000 | 654,000 | 603,000 | 616,000 | 591,000 | 568,000 | 615,000 | 595,000 | 576,000 |
| Interest coverage | 2.98 | 2.78 | 2.91 | 2.68 | 2.65 | 2.75 | 2.01 | 2.27 | 2.23 | 2.23 | 3.19 | 3.31 | 3.24 | 3.30 | 3.04 | 2.99 | 3.18 | 2.94 | 3.01 | 3.16 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,357,000K ÷ $791,000K
= 2.98
Interest coverage is a critical financial ratio for assessing a company's ability to meet its interest obligations. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. For DTE Energy Co., the interest coverage ratio has shown a stable trend over the past eight quarters.
The interest coverage ratio for Q4 2023 was 3.08, indicating that the company generated earnings more than three times its interest expenses during that period. This suggests a strong ability to cover interest payments from its operational earnings.
The company's interest coverage ratios for the previous quarters also demonstrate a consistent performance, ranging from 2.40 to 3.08. This stable range indicates that DTE Energy Co. has been effectively managing its interest obligations relative to its earnings.
Overall, the data suggests that DTE Energy Co. has maintained a healthy interest coverage ratio, reflecting its strong financial position and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023