Evergy, Inc. (EVRG)

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	1,471,100	1,428,900	1,297,000	1,262,800	1,277,600	1,186,600	1,269,000	1,261,700	1,209,200	1,281,600	1,301,900	1,283,900	1,366,700	1,362,400	1,269,700	1,239,400	1,107,800	1,558,900	1,573,900	1,566,900
Interest expense (ttm)	US$ in thousands	563,100	552,900	545,800	535,900	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
Interest coverage		2.61	2.58	2.38	2.36	2.43	2.35	2.70	2.90	2.99	3.33	3.46	3.47	3.67	3.64	3.38	3.25	2.89	4.03	4.11	4.13

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,471,100K ÷ $563,100K
= 2.61

Evergy, Inc.'s interest coverage ratio has shown a gradual decline over the past few years, indicating a potential increase in financial risk associated with servicing its debt obligations. The ratio, which measures the company's ability to meet interest payments on its outstanding debt, was at a healthy level of around 4 in early 2020 but has since decreased to approximately 2.6 by the end of 2024.

The declining trend in the interest coverage ratio suggests that Evergy, Inc. may be experiencing some challenges in generating enough operating income to cover its interest expenses. A lower interest coverage ratio could indicate a higher dependency on debt financing or declining profitability, which may raise concerns among lenders and investors about the company's financial health and ability to manage its debt load effectively.

Overall, the decreasing trend in Evergy, Inc.'s interest coverage ratio highlights the importance of closely monitoring the company's financial performance and debt management practices to ensure continued sustainability and long-term financial stability.