Duke Energy Corporation (DUK)
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 | 8,381,000 | 8,112,000 | 7,978,000 | 7,482,000 | 7,205,000 | 6,822,000 | 6,763,000 | 6,941,000 | 6,657,000 | 6,420,000 | 6,364,000 | 6,160,000 | 6,329,000 | 5,225,000 | 4,989,000 | 2,852,000 | 2,683,000 | 3,723,000 | 3,966,000 | 6,029,000 |
| Interest expense (ttm) | US$ in thousands | 3,384,000 | 3,306,000 | 3,208,000 | 3,111,000 | 3,014,000 | 2,845,000 | 2,692,000 | 2,572,000 | 2,439,000 | 2,407,000 | 2,367,000 | 2,332,000 | 2,280,000 | 2,223,000 | 2,164,000 | 2,146,000 | 2,162,000 | 2,174,000 | 2,224,000 | 2,212,000 |
| Interest coverage | 2.48 | 2.45 | 2.49 | 2.41 | 2.39 | 2.40 | 2.51 | 2.70 | 2.73 | 2.67 | 2.69 | 2.64 | 2.78 | 2.35 | 2.31 | 1.33 | 1.24 | 1.71 | 1.78 | 2.73 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,381,000K ÷ $3,384,000K
= 2.48
The interest coverage ratio of Duke Energy Corporation has fluctuated over the given period, indicating the company's ability to cover its interest expenses from its operating income. The trend shows that the ratio has experienced some variability, but has generally been above 1, which implies that the company's operating income has been sufficient to cover its interest expenses.
The ratio declined from 2.73 on March 31, 2020, to a low of 1.24 on December 31, 2020. This significant decrease may suggest a potential strain on the company's ability to meet its interest obligations during that period. However, the ratio has shown improvements since then, reaching a high of 2.78 on December 31, 2021. This upward trend indicates a better ability to service interest payments.
Overall, the interest coverage ratio of Duke Energy Corporation has remained relatively stable and within a reasonable range, signaling a generally healthy financial position in terms of its ability to meet interest expenses with operating income. However, it is important for investors and stakeholders to monitor this ratio to ensure the company's financial health in the long term.
Peer comparison
Dec 31, 2024