Alliant Energy Corp (LNT)
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 | 1,101,000 | 1,033,000 | 877,000 | 842,000 | 909,000 |
| Interest expense | US$ in thousands | 394,000 | 325,000 | 277,000 | 275,000 | 273,000 |
| Interest coverage | 2.79 | 3.18 | 3.17 | 3.06 | 3.33 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,101,000K ÷ $394,000K
= 2.79
The interest coverage ratio measures a company's ability to meet its interest obligations on its outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses. For Alliant Energy Corp., the interest coverage ratio has shown a slight declining trend over the past five years. In 2023, the interest coverage ratio stood at 2.55, lower than the previous year but still above 2, indicating that Alliant Energy Corp. generated 2.55 times the operating income to cover its interest payments.
Although the ratio has decreased slightly, it remains within a reasonable range, suggesting that the company is still able to comfortably cover its interest expenses. It is important for investors and creditors to monitor this ratio to ensure that Alliant Energy Corp. maintains a healthy level of interest coverage to meet its debt obligations effectively.
Peer comparison
Dec 31, 2023