Eversource Energy (ES)

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	2,261,276	2,315,806	2,353,237	2,648,143	2,544,248	2,440,644	2,320,619	2,269,413	2,154,600	2,124,860	2,188,243	2,153,932	2,097,353	2,082,126	2,027,834	1,760,770	1,723,231	1,686,532	1,633,121	1,877,724
Interest expense (ttm)	US$ in thousands	855,441	810,865	766,739	719,529	678,274	642,643	612,431	597,776	582,331	566,549	552,687	541,552	538,467	536,658	537,758	536,158	533,177	525,739	515,740	509,440
Interest coverage		2.64	2.86	3.07	3.68	3.75	3.80	3.79	3.80	3.70	3.75	3.96	3.98	3.90	3.88	3.77	3.28	3.23	3.21	3.17	3.69

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,261,276K ÷ $855,441K
= 2.64

The interest coverage ratio for Eversource Energy has shown a gradual decline over the past eight quarters, from a high of 3.49 in Q1 2022 to a low of 2.82 in Q4 2023. This ratio measures the company's ability to meet its interest payment obligations with its operating income.

While the declining trend may indicate a slight decrease in the company's ability to cover its interest expenses in recent quarters, it is important to note that an interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.

Overall, Eversource Energy has maintained a relatively healthy interest coverage ratio above 2 for the past two years, suggesting a solid financial position and the ability to meet its debt obligations. However, management should continue to monitor this ratio to ensure it remains at a comfortable level going forward.