Green Plains Renewable Energy Inc (GPRE)

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	-45,867	10,687	-21,304	-47,475	-61,335	-104,241	-194,152	-93,177	-89,841	-60,468	-44,745	-77,837	3,018	-40,187	-7,077	-41,122	-119,204	-89,672	-113,642	-153,013
Interest expense (ttm)	US$ in thousands	6,677	10,432	19,337	35,751	37,703	35,489	35,515	33,574	32,642	33,101	33,013	44,271	67,144	70,682	71,363	61,975	39,993	38,208	38,587	40,166
Interest coverage		-6.87	1.02	-1.10	-1.33	-1.63	-2.94	-5.47	-2.78	-2.75	-1.83	-1.36	-1.76	0.04	-0.57	-0.10	-0.66	-2.98	-2.35	-2.95	-3.81

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-45,867K ÷ $6,677K
= -6.87

The interest coverage ratio of Green Plains Renewable Energy Inc has been fluctuating between negative and positive values over the analyzed period. Negative values indicate that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses, which can be a cause for concern as it suggests a higher financial risk.

The company experienced a significant improvement in its interest coverage ratio in the most recent period, December 31, 2024, with a value of 1.02, indicating that its EBIT was just enough to cover its interest expenses.

Overall, Green Plains Renewable Energy Inc has shown inconsistency in its ability to cover its interest obligations, as reflected in the volatile nature of its interest coverage ratio throughout the analyzed period. It would be essential for the company to continue monitoring and improving its financial performance to ensure sustainable management of its debt obligations.