Alliant Energy Corp (LNT)
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 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,019,000 | 986,000 | 1,002,000 | 1,029,000 | 1,062,000 | 1,028,000 | 989,000 | 1,013,000 | 1,032,000 | 997,000 | 979,000 | 936,000 | 877,000 | 843,000 | 834,000 | 834,300 | 842,400 | 920,800 | 913,800 | 893,000 |
| Interest expense (ttm) | US$ in thousands | 449,000 | 434,000 | 419,000 | 407,000 | 394,000 | 379,000 | 363,000 | 345,000 | 325,000 | 313,000 | 298,000 | 289,000 | 284,000 | 274,000 | 274,000 | 277,000 | 280,000 | 283,000 | 283,300 | 280,500 |
| Interest coverage | 2.27 | 2.27 | 2.39 | 2.53 | 2.70 | 2.71 | 2.72 | 2.94 | 3.18 | 3.19 | 3.29 | 3.24 | 3.09 | 3.08 | 3.04 | 3.01 | 3.01 | 3.25 | 3.23 | 3.18 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,019,000K ÷ $449,000K
= 2.27
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt using its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a greater ability to meet interest payments.
Based on the data provided for Alliant Energy Corp, the interest coverage ratio has shown some fluctuation over the reporting periods. The ratio ranged from a low of 2.27 in December 31, 2024, to a high of 3.29 in June 30, 2022. Generally, the interest coverage ratio remained above 3 during most of the periods, which suggests the company has a relatively comfortable margin to cover its interest expenses with its operating profits.
It is worth noting that the interest coverage ratio decreased towards the end of the reporting period, reaching 2.27 in December 31, 2024. This decline may indicate a potential increase in the company's financial risk since it suggests a smaller buffer to cover interest payments.
Overall, monitoring the trend of the interest coverage ratio over time is crucial for assessing Alliant Energy Corp's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2024