Eversource Energy (ES)

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	2,355,173	793,362	1,142,102	678,856	580,407	2,362,239	2,399,687	2,694,580	2,590,642	2,440,682	2,320,657	2,269,451	2,154,604	2,124,844	2,188,193	2,153,867	2,097,322	2,082,094	2,027,852	1,760,808
Interest expense (ttm)	US$ in thousands	1,111,337	1,053,942	975,649	911,646	855,440	810,904	766,795	719,572	678,274	642,680	612,468	597,813	582,334	566,547	552,651	541,501	538,450	534,609	535,759	534,179
Interest coverage		2.12	0.75	1.17	0.74	0.68	2.91	3.13	3.74	3.82	3.80	3.79	3.80	3.70	3.75	3.96	3.98	3.90	3.89	3.79	3.30

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,355,173K ÷ $1,111,337K
= 2.12

The interest coverage ratio of Eversource Energy has been relatively stable over the past few quarters, indicating the company's ability to comfortably meet its interest payment obligations. The ratio ranged between 3.30 and 3.98 from March 2020 to March 2023, signifying a healthy level of coverage. However, there was a noticeable decline in the ratio in the subsequent quarters, dropping to 0.68 by December 2023. This sharp decrease may suggest potential challenges in meeting interest expenses during that period. The ratio showed some improvement by June 2024, rising to 1.17, but it still remained below the earlier levels. Overall, Eversource Energy's interest coverage ratio fluctuated over the analyzed period, indicating varying degrees of financial stability in managing its interest payments.