Evergy Inc. Common Stock (EVRG)

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	1,272,700	1,181,400	1,264,200	1,256,500	1,204,200	1,283,900	1,304,100	1,286,900	1,369,700	1,360,300	1,269,400	1,237,300	1,104,400	1,110,000	1,123,800	1,116,700	1,140,900	1,120,000	1,105,100	960,800
Interest expense (ttm)	US$ in thousands	525,800	504,200	469,700	435,300	404,000	384,600	375,900	370,400	372,600	374,800	376,000	381,700	383,900	387,200	383,200	379,100	374,000	365,600	363,900	326,900
Interest coverage		2.42	2.34	2.69	2.89	2.98	3.34	3.47	3.47	3.68	3.63	3.38	3.24	2.88	2.87	2.93	2.95	3.05	3.06	3.04	2.94

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,272,700K ÷ $525,800K
= 2.42

The interest coverage ratio of Evergy Inc has been fluctuating over the past eight quarters. The ratio has shown a slight decline from 3.24 in Q4 2022 to 2.45 in Q4 2023, indicating that the company's ability to cover its interest expenses with operating income has decreased. However, it is worth noting that the ratio remains above 1, implying that Evergy Inc is still generating enough operating income to cover its interest obligations. Despite the recent decline, the company's interest coverage ratio has historically been relatively strong, consistently above 3 in the past quarters. This suggests that Evergy Inc has been managing its debt obligations effectively and has a healthy ability to meet its interest payments. Overall, while there has been a recent dip in the ratio, Evergy Inc's interest coverage remains at a level that indicates financial stability and the ability to service its debt.