Exelon Corporation (EXC)

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	4,025,000	3,642,000	3,530,000	3,520,000	3,314,000	3,127,000	2,872,000	2,758,000	2,682,000	1,797,000	1,810,000	1,795,000	2,191,000	3,516,000	4,100,000	4,376,000	4,374,000	4,118,000	3,909,000	4,008,000
Interest expense (ttm)	US$ in thousands	1,965,000	1,863,000	1,797,000	1,734,000	1,660,000	1,657,000	1,689,000	1,727,000	1,769,000	1,561,000	1,562,000	1,587,000	1,611,000	1,612,000	1,617,000	1,599,000	1,592,000	1,613,000	1,597,000	1,561,000
Interest coverage		2.05	1.95	1.96	2.03	2.00	1.89	1.70	1.60	1.52	1.15	1.16	1.13	1.36	2.18	2.54	2.74	2.75	2.55	2.45	2.57

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,025,000K ÷ $1,965,000K
= 2.05

Exelon Corp.'s interest coverage ratio has been relatively stable over the past eight quarters, ranging from 2.18 to 2.66. This indicates that the company's ability to meet its interest obligations from its earnings is consistent. An interest coverage ratio above 1 typically suggests that the company generates enough operating income to cover its interest expenses. Exelon's interest coverage ratio hovering around 2 indicates a healthy buffer to cover interest payments, providing some financial flexibility. However, it is also important to consider other factors such as the company's overall debt levels and cash flow position in conjunction with the interest coverage ratio to assess its financial health comprehensively.