Alliant Energy Corp (LNT)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,025,000 | 1,075,000 | 901,000 | 786,000 | 716,000 |
| Interest expense | US$ in thousands | 449,000 | 420,000 | 325,000 | 277,000 | 275,000 |
| Interest coverage | 2.28 | 2.56 | 2.77 | 2.84 | 2.60 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,025,000K ÷ $449,000K
= 2.28
The interest coverage ratio of Alliant Energy Corp has shown a stable trend over the past five years, ranging from 2.28 to 2.84. This ratio indicates the company's ability to meet its interest obligations with its operating income.
With a ratio consistently above 1, Alliant Energy Corp has generated sufficient operating income to cover its interest expenses. The increasing trend from 2020 to 2021 suggests an improvement in the company's ability to meet interest payments. However, the slight decline in 2024 compared to the previous years may indicate a need for monitoring the company's ability to service its debt obligations in the future.
Overall, a relatively stable interest coverage ratio above 2 indicates that Alliant Energy Corp has been able to manage its interest payments effectively, providing a level of financial stability in meeting its debt obligations.
Peer comparison
Dec 31, 2024