IDACORP Inc (IDA)

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	355,390	310,153	312,751	305,231	325,738	357,139	346,956	334,613	327,178	313,755	314,662	328,333	331,332	337,235	337,550	325,543	316,694	313,747	304,448	297,115
Interest expense (ttm)	US$ in thousands	135,865	132,330	128,214	123,778	116,457	106,926	99,643	93,369	89,373	87,803	86,771	86,646	86,697	86,679	87,132	88,231	87,425	86,418	85,821	85,202
Interest coverage		2.62	2.34	2.44	2.47	2.80	3.34	3.48	3.58	3.66	3.57	3.63	3.79	3.82	3.89	3.87	3.69	3.62	3.63	3.55	3.49

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $355,390K ÷ $135,865K
= 2.62

IDACORP Inc's interest coverage ratio has been relatively stable over the past few years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio measures the company's ability to pay its interest expenses with its earnings before interest and taxes (EBIT).

From March 31, 2020, to March 31, 2024, the interest coverage ratio fluctuated within a range of 2.47 to 3.89. The ratio peaked at 3.89 on September 30, 2021, and has shown a gradual decline thereafter. It decreased to 2.80 by December 31, 2023, and further declined to 2.62 by the end of December 31, 2024.

While the overall trend shows a slight decrease in the interest coverage ratio in recent periods, the ratio has remained above 2 throughout the period, suggesting that IDACORP Inc's earnings were sufficient to cover its interest expenses. However, the declining trend towards the end of the period may indicate a need for the company to closely monitor its interest obligations relative to its earnings in the future to ensure continued financial stability and solvency.