Duke Energy Corporation (DUK)
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 | 8,578,000 | 7,205,000 | 6,560,000 | 6,380,000 | 5,453,000 |
| Interest expense | US$ in thousands | 3,384,000 | 3,014,000 | 2,439,000 | 2,280,000 | 2,097,000 |
| Interest coverage | 2.53 | 2.39 | 2.69 | 2.80 | 2.60 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $8,578,000K ÷ $3,384,000K
= 2.53
Interest coverage, a key financial ratio, measures a company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT). For Duke Energy Corporation, the interest coverage ratio has been relatively stable over the past years, ranging from 2.39 to 2.80.
A ratio of 2.80 indicates that Duke Energy's EBIT is sufficient to cover its interest payments 2.80 times over, suggesting a moderate level of financial risk. However, a decline to 2.39 in December 31, 2023, indicates a slight decrease in the company's ability to cover its interest expenses.
The overall trend in Duke Energy's interest coverage ratio suggests that the company has maintained a satisfactory ability to meet its interest obligations, but investors and analysts may want to closely monitor any fluctuations in this ratio to assess the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2024