MDU Resources Group Inc (MDU)
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 | 307,009 | 654,110 | 380,637 | 560,044 | 571,045 |
| Interest expense | US$ in thousands | 108,347 | 114,308 | 119,300 | 94,000 | 96,500 |
| Interest coverage | 2.83 | 5.72 | 3.19 | 5.96 | 5.92 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $307,009K ÷ $108,347K
= 2.83
MDU Resources Group Inc's interest coverage ratio has shown some variation over the years based on the provided data. As of December 31, 2020 and December 31, 2021, the interest coverage ratio stood at 5.92 and 5.96, respectively, indicating the company's ability to cover its interest expenses with operating income. However, there was a notable decrease in the ratio to 3.19 as of December 31, 2022, which may raise some concerns about the company's ability to meet its interest obligations from its earnings.
Subsequently, the interest coverage ratio improved to 5.72 as of December 31, 2023, suggesting a better ability to handle interest payments compared to the previous year. However, there was another decline in the ratio to 2.83 as of December 31, 2024, indicating a potential strain on the company's earnings to cover interest costs.
Overall, the trend in MDU Resources Group Inc's interest coverage ratio shows some fluctuations over the years, with periods of strength followed by periods of weakness. It is crucial for investors and stakeholders to monitor this ratio closely to assess the company's financial health and its ability to meet its debt obligations.
Peer comparison
Dec 31, 2024