Consolidated Edison Inc (ED)
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 | 3,181,000 | 3,754,000 | 3,450,000 | 3,461,000 | 3,483,000 | 3,189,000 | 3,355,000 | 3,251,000 | 3,065,000 | 2,720,000 | 2,670,000 | 2,626,000 | 2,568,000 | 2,486,000 | 2,462,000 | 2,504,000 | 2,416,000 | 2,584,000 | 2,582,000 | 2,601,000 |
| Interest expense (ttm) | US$ in thousands | 1,187,000 | 1,148,000 | 1,101,000 | 1,049,000 | 1,022,000 | 1,003,000 | 943,000 | 944,000 | 920,000 | 909,000 | 944,000 | 968,000 | 953,000 | 940,000 | 932,000 | 918,000 | 1,017,000 | 1,014,000 | 1,050,000 | 1,066,000 |
| Interest coverage | 2.68 | 3.27 | 3.13 | 3.30 | 3.41 | 3.18 | 3.56 | 3.44 | 3.33 | 2.99 | 2.83 | 2.71 | 2.69 | 2.64 | 2.64 | 2.73 | 2.38 | 2.55 | 2.46 | 2.44 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,181,000K ÷ $1,187,000K
= 2.68
Consolidated Edison Inc's interest coverage ratio has shown fluctuations over the past few years. The ratio has ranged from a low of 2.38 in December 31, 2020 to a high of 3.56 in June 30, 2023. Generally, a higher interest coverage ratio indicates the company's ability to meet its interest obligations using its operating profits.
From the data provided, we can see that the interest coverage ratio has generally improved over the years, with the most recent ratio standing at 3.27 as of September 30, 2024. This suggests that Consolidated Edison Inc's ability to cover its interest expenses with its earnings has strengthened.
However, there was a slight decline in the interest coverage ratio in December 31, 2024, dropping to 2.68. It is important for investors and stakeholders to monitor this ratio closely, as a declining trend could indicate potential financial difficulties in meeting interest obligations.
Overall, based on the trend observed in the interest coverage ratio, Consolidated Edison Inc appears to have been managing its interest expenses well, but continued monitoring is advisable to ensure the company's financial health and sustainability.
Peer comparison
Dec 31, 2024