Warrior Met Coal Inc (HCC)
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 | 263,043 | 400,808 | 469,443 | 488,978 | 541,406 | 525,458 | 542,143 | 824,235 | 801,424 | 868,076 | 794,884 | 419,523 | 243,753 | 21,715 | -44,056 | -46,557 | -27,139 | 34,710 | 103,836 | 257,112 |
| Interest expense (ttm) | US$ in thousands | 4,271 | 3,649 | 2,679 | 2,418 | 8,740 | 9,276 | 9,588 | 9,847 | 3,284 | 3,524 | 3,779 | 3,988 | 3,882 | 3,500 | 2,796 | 2,216 | 1,988 | 1,970 | 2,441 | 2,294 |
| Interest coverage | 61.59 | 109.84 | 175.23 | 202.22 | 61.95 | 56.65 | 56.54 | 83.70 | 244.04 | 246.33 | 210.34 | 105.20 | 62.79 | 6.20 | -15.76 | -21.01 | -13.65 | 17.62 | 42.54 | 112.08 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $263,043K ÷ $4,271K
= 61.59
Warrior Met Coal Inc's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
From March 31, 2020, to March 31, 2022, the interest coverage ratio improved significantly, indicating that the company was generating enough operating income to cover its interest expenses comfortably. This trend continued until June 30, 2022, when the interest coverage ratio reached its peak at 210.34, reflecting a robust financial position.
However, from September 30, 2022, to December 31, 2024, there was a decline in the interest coverage ratio, albeit remaining above 1, indicating that the company's operating income was still able to cover its interest payments. The ratio fluctuated during this period, with some quarters showing a stronger interest coverage than others.
Overall, Warrior Met Coal Inc's interest coverage ratio has shown volatility, but has mostly remained above 1, suggesting that the company has been able to manage its interest expense obligations effectively, though with some variation in performance over time.
Peer comparison
Dec 31, 2024