Expand Energy Corporation (EXE)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,221,000 | 3,811,000 | 969,000 | -9,422,000 | 12,000 |
| Interest expense | US$ in thousands | 104,000 | 160,000 | 73,000 | 331,000 | 651,000 |
| Interest coverage | 30.97 | 23.82 | 13.27 | -28.47 | 0.02 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,221,000K ÷ $104,000K
= 30.97
The interest coverage ratio for Expand Energy Corporation has shown an improving trend over the past five years. The ratio has increased from 0.02 in 2019 to 30.97 in 2023, indicating that the company's ability to cover its interest expenses with its earnings has significantly strengthened. In 2020, the interest coverage ratio was negative, which may suggest that the company faced challenges in meeting its interest obligations with its operating income. However, the substantial improvement in the following years reflects a positive shift in the company's financial health and efficiency in managing its debt obligations. Overall, the upward trajectory of the interest coverage ratio signals an enhanced ability of Expand Energy Corporation to service its debt and signifies a positive trend in its financial performance.
Peer comparison
Dec 31, 2023