Consolidated Edison Inc (ED)

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 4,028,000 3,982,000 4,025,000 4,011,000 3,010,000 2,842,000 2,767,000 2,705,000 2,441,000 2,157,000 2,098,000 2,129,000 2,208,000 2,603,000 2,616,000 2,628,000 2,662,000 2,752,000 2,727,000 2,695,000
Interest expense (ttm) US$ in thousands 1,022,000 1,023,000 963,000 932,000 852,000 822,000 855,000 911,000 905,000 891,000 885,000 871,000 1,017,000 1,014,000 1,050,000 1,069,000 997,000 993,000 939,000 872,000
Interest coverage 3.94 3.89 4.18 4.30 3.53 3.46 3.24 2.97 2.70 2.42 2.37 2.44 2.17 2.57 2.49 2.46 2.67 2.77 2.90 3.09

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,028,000K ÷ $1,022,000K
= 3.94

Consolidated Edison, Inc.'s interest coverage ratio has shown a decreasing trend over the past eight quarters. In Q1 2022, the interest coverage ratio was at its highest at 3.04, gradually declining to 2.28 in Q4 2023. This downward trend suggests that the company may be becoming less capable of covering its interest expenses with its operating income. It is important for investors and creditors to monitor this trend closely as a declining interest coverage ratio could signal financial distress and potential difficulties in meeting debt obligations.