Kinder Morgan Inc (KMI)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,263,000 | 4,266,000 | 4,259,000 | 4,235,000 | 4,065,000 | 3,911,000 | 3,824,000 | 2,054,000 | 2,916,000 | 2,946,000 | 2,921,000 | 3,403,000 | 1,560,000 | 2,511,000 | 2,643,000 | 3,898,000 | 4,873,000 | 4,000,000 | 4,564,000 | 3,863,000 |
| Interest expense (ttm) | US$ in thousands | 848,000 | 718,000 | 663,000 | 1,378,000 | 1,409,000 | 1,457,000 | 1,426,000 | 1,448,000 | 1,492,000 | 1,503,000 | 1,518,000 | 1,536,000 | 1,595,000 | 1,656,000 | 1,720,000 | 1,777,000 | 1,801,000 | 1,820,000 | 1,846,000 | 1,910,000 |
| Interest coverage | 5.03 | 5.94 | 6.42 | 3.07 | 2.89 | 2.68 | 2.68 | 1.42 | 1.95 | 1.96 | 1.92 | 2.22 | 0.98 | 1.52 | 1.54 | 2.19 | 2.71 | 2.20 | 2.47 | 2.02 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,263,000K ÷ $848,000K
= 5.03
Kinder Morgan Inc's interest coverage ratio has trended downwards over the past four quarters, indicating a slight decrease in the company's ability to meet its interest payment obligations from its operating profits. In Q1 2023, Kinder Morgan Inc's interest coverage ratio was 3.08, demonstrating a slight decrease from the previous quarter. This decrease continued in Q2 and Q3 2023 with interest coverage ratios of 2.95 and 2.88 respectively. The trend of declining interest coverage ratios reversed slightly in Q4 2023, showing a ratio of 2.83.
Overall, Kinder Morgan Inc's interest coverage remains relatively healthy, as all ratios are above 1, indicating that the company's operating profits are sufficient to cover its interest expenses. However, the decreasing trend in interest coverage ratios should be monitored closely as it may indicate increasing financial leverage or declining operating income, which could potentially impact the company's financial stability in the future.
Peer comparison
Dec 31, 2023