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.