Exelon Corporation (EXC)
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 | 4,319,000 | 4,023,000 | 3,315,000 | 2,682,000 | 2,191,000 |
| Interest expense | US$ in thousands | 251,000 | 1,960,000 | 1,662,000 | 1,776,000 | 1,610,000 |
| Interest coverage | 17.21 | 2.05 | 1.99 | 1.51 | 1.36 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,319,000K ÷ $251,000K
= 17.21
The interest coverage ratio of Exelon Corporation has shown improvement over the past five years, increasing from 1.36 in December 2020 to a significant 17.21 in December 2024. This indicates that Exelon's ability to cover its interest expenses with operating income has strengthened considerably. A rising trend in interest coverage is generally seen as a positive sign, reflecting the company's enhanced financial health and reduced risk of default on its debt obligations. The notable increase in the interest coverage ratio in 2024 suggests that Exelon has been generating more income relative to its interest expenses, which may be attributed to improved operational efficiency, increased profitability, or effective cost management strategies. Overall, the upward trajectory of Exelon's interest coverage ratio signals a favorable financial position and a lower vulnerability to interest rate fluctuations.
Peer comparison
Dec 31, 2024