DTE Energy Company (DTE)
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 | 2,126,000 | 2,261,000 | 2,298,000 | 2,223,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 951,000 | 911,000 | 859,000 | 818,000 | 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 |
| Interest coverage | 2.24 | 2.48 | 2.68 | 2.72 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,126,000K ÷ $951,000K
= 2.24
The interest coverage ratio for DTE Energy Company has shown some fluctuations over the past few years. As of December 31, 2024, the interest coverage ratio stood at 2.24, indicating the company's ability to cover its interest expenses by its earnings before interest and taxes (EBIT) was 2.24 times.
The trend in interest coverage ratio from 2020 to 2024 demonstrates some variability, reaching a peak of 3.31 on March 31, 2021, and declining gradually thereafter. However, the ratio remained above 2.00 during all periods, showing that the company generally had more than enough operating income to cover its interest charges.
It is worth noting the slight decline in the interest coverage ratio in the most recent periods, from a high of 3.31 in March 2021 to 2.24 in December 2024. This may indicate a decrease in the company's ability to cover its interest obligations, potentially signaling a need for monitoring its debt levels and interest cost management in the future.
Overall, while the interest coverage ratio for DTE Energy Company has experienced some fluctuations, it has generally remained at a level that suggests the company has been able to comfortably meet its interest obligations from its operating profits.
Peer comparison
Dec 31, 2024