FirstEnergy Corporation (FE)
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 | 2,620,000 | 2,537,000 | 2,414,000 | 2,575,000 | 2,535,000 | 2,609,000 | 2,538,000 | 2,445,000 | 2,473,000 | 2,609,000 | 2,715,000 | 2,649,000 | 2,672,000 | 2,384,000 | 2,416,000 | 2,600,000 | 2,108,000 | 1,642,000 | 1,580,000 | 1,636,000 |
| Interest expense (ttm) | US$ in thousands | 1,011,000 | 1,040,000 | 1,062,000 | 1,060,000 | 1,027,000 | 985,000 | 947,000 | 941,000 | 993,000 | 1,032,000 | 1,070,000 | 1,088,000 | 1,066,000 | 1,054,000 | 1,036,000 | 1,015,000 | 988,000 | 977,000 | 974,000 | 972,000 |
| Interest coverage | 2.59 | 2.44 | 2.27 | 2.43 | 2.47 | 2.65 | 2.68 | 2.60 | 2.49 | 2.53 | 2.54 | 2.43 | 2.51 | 2.26 | 2.33 | 2.56 | 2.13 | 1.68 | 1.62 | 1.68 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,620,000K ÷ $1,011,000K
= 2.59
FirstEnergy Corporation's interest coverage ratio has shown a generally positive trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt from its operating income.
From the data provided, we observe that the interest coverage ratio has improved from 1.68 on March 31, 2020, to 2.59 on December 31, 2024. This indicates that the company's ability to cover its interest expenses with operating income has strengthened over time.
There are fluctuations in the interest coverage ratio throughout the period, but the overall trend is upward, indicating a positive financial performance in terms of the company's ability to service its debt obligations. It is important to note that an interest coverage ratio above 1 suggests that the company is generating enough operating income to cover its interest expenses.
Overall, the increasing trend in FirstEnergy Corporation's interest coverage ratio signifies an improving financial position and indicates a reduced risk of default on its debt obligations due to a healthier ability to meet interest payments.
Peer comparison
Dec 31, 2024