Kinder Morgan Inc (KMI)
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 | 4,263,000 | 4,065,000 | 2,916,000 | 1,560,000 | 4,873,000 |
| Interest expense | US$ in thousands | 1,797,000 | -1,443,000 | 1,496,000 | 1,587,000 | 1,801,000 |
| Interest coverage | 2.37 | — | 1.95 | 0.98 | 2.71 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,263,000K ÷ $1,797,000K
= 2.37
Kinder Morgan Inc's interest coverage ratio has shown some fluctuations over the past five years. The ratio decreased from 3.43 in 2021 to 2.68 in 2020, indicating a slight decline in the company's ability to cover its interest expenses with operating income. However, in 2022, there was a slight improvement in the ratio to 3.20, suggesting a better ability to meet interest obligations.
The most recent data for 2023 shows an interest coverage ratio of 2.83, which is lower than the previous year but still above 2. This indicates that Kinder Morgan Inc continues to generate enough operating income to cover its interest expenses, although it may be a bit more strained compared to previous years.
Overall, the trend in Kinder Morgan Inc's interest coverage ratio suggests varying levels of strength in meeting interest obligations over the past five years, with some fluctuations observed. Further analysis of the company's financial performance and debt management strategies may provide more insight into the factors driving these changes.
Peer comparison
Dec 31, 2023