Evergy, Inc. (EVRG)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,471,100 | 1,277,600 | 1,209,200 | 1,366,700 | 1,100,800 |
| Interest expense | US$ in thousands | 563,100 | 565,100 | 404,000 | 372,600 | 383,900 |
| Interest coverage | 2.61 | 2.26 | 2.99 | 3.67 | 2.87 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,471,100K ÷ $563,100K
= 2.61
Evergy, Inc.'s interest coverage ratio has shown some fluctuation over the past five years. In 2020, the interest coverage ratio stood at 2.87, indicating that the company's operating income was able to cover its interest expenses approximately 2.87 times.
The ratio improved in 2021 to 3.67, suggesting a stronger ability to meet interest obligations with operating profits. However, in 2022, the interest coverage ratio decreased slightly to 2.99, indicating a slight decrease in the company's ability to cover interest payments.
By 2023, the interest coverage ratio declined further to 2.26. This significant decrease may raise concerns about Evergy's ability to generate sufficient operating income to cover interest expenses comfortably.
In 2024, the company's interest coverage ratio showed some improvement, reaching 2.61. While the ratio is higher than in 2023, it still indicates that the company may face challenges in meeting its interest obligations from operating income alone.
Overall, Evergy, Inc.'s interest coverage ratio has exhibited variability over the years, suggesting a need for the company to focus on improving its operating performance to ensure sustainable coverage of interest expenses.
Peer comparison
Dec 31, 2024