IDACORP Inc (IDA)
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 | 440,869 | 405,646 | 317,982 | 314,402 | 297,656 |
| Interest expense | US$ in thousands | 135,865 | 116,457 | 89,375 | 86,698 | 87,426 |
| Interest coverage | 3.24 | 3.48 | 3.56 | 3.63 | 3.40 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $440,869K ÷ $135,865K
= 3.24
Based on the provided data, IDACORP Inc's interest coverage ratio has shown consistency over the years. The interest coverage ratios for the years ending December 31, 2020, and December 31, 2021 were 3.40 and 3.63 respectively, indicating the company's ability to cover its interest expenses by its operating income.
Subsequently, the interest coverage ratios for the years ending December 31, 2022, December 31, 2023, and December 31, 2024 were 3.56, 3.48, and 3.24 respectively. These ratios suggest that IDACORP Inc has maintained a sufficient level of earning capacity to comfortably meet its interest obligations throughout these years.
Overall, the consistent interest coverage ratios above 3 demonstrate that IDACORP Inc has been effectively managing its interest expenses in relation to its operating profits, which is a positive indicator of the company's financial health and stability.
Peer comparison
Dec 31, 2024