GE Vernova LLC (GEV)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 472,000 | 296,000 | 660,000 | 126,000 | 19,000 |
| Interest expense (ttm) | US$ in thousands | 110,000 | 118,000 | 103,000 | 64,000 | 71,000 |
| Interest coverage | 4.29 | 2.51 | 6.41 | 1.97 | 0.27 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $472,000K ÷ $110,000K
= 4.29
The interest coverage ratio of GE Vernova LLC over the specified period shows a fluctuating trend. As of December 31, 2023, the company's interest coverage was notably low at 0.27, indicating potential challenges in meeting interest payment obligations with its operating income. However, there was a significant improvement in the ratio by March 31, 2024, reaching 1.97, suggesting a better ability to cover interest expenses.
Subsequently, by June 30, 2024, the interest coverage ratio experienced a substantial boost to 6.41, indicating a strong capacity to handle interest payments relative to its operating income. However, this declined slightly by September 30, 2024, to 2.51, which could signal a moderate decrease in the company's ability to cover interest costs compared to the previous quarter.
By the end of the period on December 31, 2024, the interest coverage ratio improved once again to 4.29, reflecting a healthier position in managing interest obligations. Overall, while the company experienced some fluctuations in its interest coverage ratio, it appears to have made progress in managing its interest expenses more effectively and enhancing its financial stability over the period examined.
Peer comparison
Dec 31, 2024