Nextera Energy Inc (NEE)
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 | 4,335,000 | 10,612,000 | 4,081,000 | 3,889,000 | 3,912,000 |
| Interest expense | US$ in thousands | 2,235,000 | 3,324,000 | 585,000 | 1,270,000 | 1,950,000 |
| Interest coverage | 1.94 | 3.19 | 6.98 | 3.06 | 2.01 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,335,000K ÷ $2,235,000K
= 1.94
Nextera Energy Inc's interest coverage has shown fluctuations over the past five years. In December 2020, the interest coverage ratio was 2.01, indicating that the company's operating income was just sufficient to cover its interest expenses. By December 2021, the interest coverage ratio improved to 3.06, suggesting a better ability to meet interest payments. This trend continued to December 2022, where the interest coverage ratio significantly increased to 6.98, demonstrating a strong capacity to handle interest obligations.
However, in December 2023, the interest coverage ratio dipped to 3.19, although it remained relatively healthy. This was followed by a decrease to 1.94 in December 2024, indicating a decrease in the company's ability to cover its interest expenses with operating income. Overall, while the interest coverage ratios varied, Nextera Energy Inc generally demonstrated a reasonable ability to meet its interest obligations across the five-year period.
Peer comparison
Dec 31, 2024