Warrior Met Coal Inc (HCC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 541,406 | 801,424 | 243,753 | -27,139 | 383,392 |
| Interest expense | US$ in thousands | 1,935 | 3,284 | 3,902 | 1,988 | 1,761 |
| Interest coverage | 279.80 | 244.04 | 62.47 | -13.65 | 217.71 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $541,406K ÷ $1,935K
= 279.80
Warrior Met Coal Inc's interest coverage ratio has shown significant fluctuations over the five-year period. In 2019, the company had an interest coverage ratio of 13.07, indicating that the company's operating income was sufficient to cover its interest expenses. However, in 2020, the interest coverage ratio dropped to -0.84, suggesting that the company's operating income was insufficient to cover its interest expenses, leading to a situation where its earnings were not enough to meet interest obligations.
The interest coverage ratio improved in 2021 to 8.45, indicating a better ability to cover interest expenses compared to the previous year. This improvement continued in 2022 with a substantial interest coverage ratio of 44.07, suggesting a significant increase in the company's ability to meet its interest payments through its operating income.
However, the lack of data for 2023 makes it challenging to provide a complete analysis for the latest period. Overall, the trend in Warrior Met Coal Inc's interest coverage ratio shows fluctuations, with improvements in recent years indicating a potentially stronger financial position in terms of its ability to cover interest expenses.
Peer comparison
Dec 31, 2023