Duke Energy Corporation (DUK)
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 | 6,293,000 | 5,289,000 | 6,383,000 | 3,305,000 | 6,471,000 |
| Interest expense | US$ in thousands | 3,014,000 | 2,439,000 | 2,207,000 | 2,097,000 | 2,204,000 |
| Interest coverage | 2.09 | 2.17 | 2.89 | 1.58 | 2.94 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,293,000K ÷ $3,014,000K
= 2.09
The interest coverage ratio for Duke Energy Corp. has been relatively stable over the past five years, with values ranging from 1.63 to 2.68. The ratio measures the company's ability to cover its interest expenses with its operating income.
In 2023, the interest coverage ratio decreased slightly to 2.39 from 2.68 in 2022. This may indicate that Duke Energy Corp. had a slightly lower ability to cover its interest expenses with its operating income in 2023 compared to the previous year. However, the ratio remains above 1, which indicates that the company is generating enough operating income to cover its interest expenses.
Overall, the trend in Duke Energy Corp.'s interest coverage ratio demonstrates a reasonable ability to meet its interest obligations, though it is important for the company to continue monitoring and managing its interest expenses in relation to its operating income.
Peer comparison
Dec 31, 2023