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.