Expand Energy Corporation (EXE)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 360,000 | 609,000 | 1,443,000 | 3,221,000 | 4,694,000 | 5,609,000 | 6,419,000 | 3,811,000 | 3,002,000 | 1,655,000 | -116,000 | 969,000 | -850,000 | -1,232,000 | -950,000 | -9,422,000 | -9,226,000 | -8,391,000 | -7,979,000 | 12,000 |
| Interest expense (ttm) | US$ in thousands | 81,000 | 84,000 | 86,000 | 104,000 | 122,000 | 151,000 | 165,000 | 160,000 | 146,000 | 111,000 | 93,000 | 73,000 | 71,000 | 79,000 | 198,000 | 331,000 | 445,000 | 597,000 | 635,000 | 651,000 |
| Interest coverage | 4.44 | 7.25 | 16.78 | 30.97 | 38.48 | 37.15 | 38.90 | 23.82 | 20.56 | 14.91 | -1.25 | 13.27 | -11.97 | -15.59 | -4.80 | -28.47 | -20.73 | -14.06 | -12.57 | 0.02 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $360,000K ÷ $81,000K
= 4.44
Expand Energy Corporation's interest coverage ratio has shown fluctuations over the past few quarters, with a notable improvement in the most recent period. The interest coverage ratio measures the company's ability to cover its interest payments with its operating earnings. A higher ratio indicates a stronger ability to meet interest obligations.
The trend in Expand Energy Corporation's interest coverage ratio shows a positive trajectory, with a notable increase from negative figures in previous periods to a healthy ratio of 4.44 in the most recent quarter. This suggests that the company is generating sufficient operating income to comfortably cover its interest expenses.
The significant improvement in the interest coverage ratio from negative values to positive territory indicates a positive turnaround in the company's financial health and debt servicing capabilities. However, despite the recent improvement, it is essential for management to continue monitoring and maintaining a strong interest coverage ratio to ensure the company's long-term financial stability.
Peer comparison
Sep 30, 2024