Edison International (EIX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,627,000 | 1,483,000 | 1,477,000 | 1,336,000 | 1,847,000 |
| Interest expense | US$ in thousands | 1,612,000 | 1,169,000 | 925,000 | 902,000 | 841,000 |
| Interest coverage | 1.63 | 1.27 | 1.60 | 1.48 | 2.20 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,627,000K ÷ $1,612,000K
= 1.63
The interest coverage ratio of Edison International has shown a slight declining trend over the past five years. At the end of 2023, the interest coverage ratio stood at 2.45, down from 2.64 in 2022. This indicates that the company's ability to cover its interest expenses with operating income has weakened slightly. Despite this decrease, the ratio remains above 1, indicating that the company is generating enough operating income to cover its interest obligations. However, management may need to closely monitor this trend to ensure the company's ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023