Warrior Met Coal Inc (HCC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 254,890 | 541,406 | 801,424 | 243,753 | -27,139 |
| Interest expense | US$ in thousands | 4,271 | 1,935 | 3,284 | 3,902 | 1,988 |
| Interest coverage | 59.68 | 279.80 | 244.04 | 62.47 | -13.65 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $254,890K ÷ $4,271K
= 59.68
Warrior Met Coal Inc's interest coverage ratio has shown significant fluctuations over the years based on the provided data.
At the end of December 31, 2020, the interest coverage ratio was negative at -13.65, indicating that the company's earnings were not sufficient to cover its interest expenses.
However, by December 31, 2021, the interest coverage ratio improved significantly to 62.47, suggesting that the company's earnings were more than capable of covering its interest obligations.
The trend continued to improve over the following years, with the interest coverage ratios reaching 244.04 at the end of December 31, 2022, 279.80 by December 31, 2023, and tapering off slightly to 59.68 at the end of December 31, 2024.
Overall, the trend indicates that Warrior Met Coal Inc has made positive strides in managing its interest expenses and generating sufficient earnings to cover its interest obligations, with a notable improvement in the recent years.
Peer comparison
Dec 31, 2024