Edison International (EIX)
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 | 2,746,000 | 2,719,000 | 2,268,000 | 2,114,000 | 1,702,000 | 1,559,000 | 1,437,000 | 1,528,000 | 1,672,000 | 1,853,000 | 1,593,000 | 1,483,000 | 1,336,000 | 833,000 | 1,837,000 | 1,811,000 | 1,847,000 | -468,000 | -347,000 | -425,000 |
| Interest expense (ttm) | US$ in thousands | 1,612,000 | 1,536,000 | 1,405,000 | 1,284,000 | 1,169,000 | 1,050,000 | 993,000 | 954,000 | 925,000 | 920,000 | 897,000 | 894,000 | 902,000 | 898,000 | 890,000 | 872,000 | 841,000 | 815,000 | 789,000 | 758,000 |
| Interest coverage | 1.70 | 1.77 | 1.61 | 1.65 | 1.46 | 1.48 | 1.45 | 1.60 | 1.81 | 2.01 | 1.78 | 1.66 | 1.48 | 0.93 | 2.06 | 2.08 | 2.20 | -0.57 | -0.44 | -0.56 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,746,000K ÷ $1,612,000K
= 1.70
Edison International's interest coverage ratio has shown relatively consistent performance over the past eight quarters, ranging from 1.86 to 2.68. The ratio indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
Overall, the interest coverage ratio has been above 2, suggesting that the company is generating sufficient EBIT to cover its interest expenses. The slight fluctuation in the ratio indicates some variability in the company's earnings and interest expenses over time.
The decreasing trend from Q4 2022 to Q2 2022 might raise some concerns, as the ratio fell below 2 during these quarters. However, the ratio improved in the subsequent quarters, indicating a better ability to cover interest payments with earnings.
In conclusion, while the interest coverage ratio of Edison International has shown some variation, it generally reflects a healthy ability to meet interest obligations with operating earnings.
Peer comparison
Dec 31, 2023