Knife River Corporation (KNF)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 325,579 | 323,977 | 322,581 | 301,255 | 307,558 | 297,501 | 229,992 | 191,599 | 188,843 |
| Interest expense (ttm) | US$ in thousands | 55,242 | 55,948 | 57,366 | 62,530 | 58,049 | 83,504 | 76,967 | 65,291 | 61,062 |
| Interest coverage | 5.89 | 5.79 | 5.62 | 4.82 | 5.30 | 3.56 | 2.99 | 2.93 | 3.09 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $325,579K ÷ $55,242K
= 5.89
Knife River Corporation's interest coverage ratio, which measures the company's ability to meet its interest payments on its debt obligations, shows a fluctuating trend over the reporting periods.
As of December 31, 2022, the interest coverage ratio was 3.09, indicating that the company generated 3.09 times the earnings needed to cover its interest expenses. This ratio decreased slightly to 2.93 by March 31, 2023 but improved to 2.99 by June 30, 2023.
The trend then shows significant improvement, with the interest coverage ratio reaching 3.56 by September 30, 2023, and further increasing to 5.30 by December 31, 2023. This significant improvement continued into the following periods, with the ratio being 4.82 as of March 31, 2024, 5.62 by June 30, 2024, 5.79 by September 30, 2024, and finally reaching 5.89 by December 31, 2024.
Overall, the increasing trend in Knife River Corporation's interest coverage ratio from 2023 to 2024 demonstrates the company's improving ability to cover its interest obligations with its earnings. This may indicate a stronger financial position and lower risk of default on its debt payments.
Peer comparison
Dec 31, 2024