EQT Corporation (EQT)

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	684,737	629,130	925,799	884,267	2,323,846	3,924,598	4,805,783	6,109,924	2,574,344	2,716,634	-742,060	-3,214,960	-1,281,033	-3,614,859	-1,809,422	-902,794	-994,824	-2,628,268	-2,270,687	-1,755,061
Interest expense (ttm)	US$ in thousands	454,825	341,194	243,322	227,485	219,660	202,486	202,197	228,299	249,655	265,542	280,913	287,182	289,753	280,590	274,235	267,367	259,268	241,980	220,535	205,652
Interest coverage		1.51	1.84	3.80	3.89	10.58	19.38	23.77	26.76	10.31	10.23	-2.64	-11.19	-4.42	-12.88	-6.60	-3.38	-3.84	-10.86	-10.30	-8.53

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $684,737K ÷ $454,825K
= 1.51

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.

Analyzing the interest coverage of EQT Corporation based on the provided data:

1. From March 31, 2020, to December 31, 2021: The interest coverage ratios were consistently negative, indicating that EQT Corporation was not generating enough operating income to cover its interest expenses during this period. This suggests a concerning financial situation where the company may have been struggling to meet its debt obligations.

2. From March 31, 2022, to September 30, 2022: The interest coverage ratios improved significantly, reaching positive values of 10.23 and 10.31. This positive trend indicates that EQT Corporation's operating income had increased sufficiently to comfortably cover its interest expenses during these quarters.

3. From March 31, 2023, to December 31, 2024: The interest coverage ratios continued to show improvement, with values ranging from 1.51 to 26.76. These ratios suggest that EQT Corporation's ability to cover its interest payments strengthened significantly during this period, indicating a more favorable financial position.

Overall, the analysis of EQT Corporation's interest coverage demonstrates a shift from negative ratios reflecting financial distress to positive ratios indicating improved financial health and better ability to meet interest expenses. This improvement suggests a more stable and sustainable financial position for the company.