Edison International (EIX)
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 | 3,948,000 | 3,983,000 | 3,464,000 | 3,227,000 | 2,929,000 | 2,779,000 | 2,199,000 | 1,892,000 | 1,531,000 | 1,432,000 | 1,409,000 | 1,523,000 | 1,694,000 | 1,654,000 | 1,294,000 | 1,239,000 | 1,143,000 | 865,000 | 1,908,000 | 2,037,000 |
| Interest expense (ttm) | US$ in thousands | 1,869,000 | 1,827,000 | 1,783,000 | 1,695,000 | 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 |
| Interest coverage | 2.11 | 2.18 | 1.94 | 1.90 | 1.82 | 1.81 | 1.57 | 1.47 | 1.31 | 1.36 | 1.42 | 1.60 | 1.83 | 1.80 | 1.44 | 1.39 | 1.27 | 0.96 | 2.14 | 2.34 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,948,000K ÷ $1,869,000K
= 2.11
Edison International's interest coverage ratio has shown fluctuations over the reported periods. The interest coverage ratio is a measure of a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a greater ability to meet interest payment obligations.
From March 31, 2020, to December 31, 2020, the interest coverage ratio ranged from 0.96 to 2.34, indicating some variability in the company's ability to cover its interest expenses. This suggests that there may have been some challenges in meeting interest obligations during certain quarters.
Subsequently, from March 31, 2021, to December 31, 2024, the interest coverage ratio fluctuated between 1.27 and 2.18. While the ratio improved slightly compared to the earlier periods, it remained relatively stable around the 1.3 to 2.2 range.
Overall, the trend indicates that Edison International has been able to cover its interest expenses, albeit with some fluctuations in the ratio over time. This suggests that the company has managed its debt obligations reasonably well, but there may be room for further improvement in maintaining a more consistent and higher interest coverage ratio.
Peer comparison
Dec 31, 2024