Nextera Energy Inc (NEE)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 10,237,000 | 9,623,000 | 9,649,000 | 7,798,000 | 4,081,000 | 3,390,000 | 1,907,000 | 1,469,000 | 2,913,000 | 2,498,000 | 3,127,000 | 3,803,000 | 5,115,000 | 5,053,000 | 5,638,000 | 6,199,000 | 5,353,000 | 5,582,000 | 4,957,000 | 4,356,000 |
| Interest expense (ttm) | US$ in thousands | 3,324,000 | 2,029,000 | 2,262,000 | 2,344,000 | 1,303,000 | 1,217,000 | 1,293,000 | 1,833,000 | 2,112,000 | 1,624,000 | 1,497,000 | 1,060,000 | 1,950,000 | 2,027,000 | 2,565,000 | 2,846,000 | 2,249,000 | 2,770,000 | 2,191,000 | 1,984,000 |
| Interest coverage | 3.08 | 4.74 | 4.27 | 3.33 | 3.13 | 2.79 | 1.47 | 0.80 | 1.38 | 1.54 | 2.09 | 3.59 | 2.62 | 2.49 | 2.20 | 2.18 | 2.38 | 2.02 | 2.26 | 2.20 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $10,237,000K ÷ $3,324,000K
= 3.08
NextEra Energy Inc's interest coverage ratio fluctuated over the past eight quarters, ranging from a low of 0.74 in Q1 2022 to a high of 6.61 in Q3 2022. In Q4 2023, the interest coverage ratio stood at 2.76, indicating that the company's ability to cover its interest expenses with operating income has declined compared to recent quarters.
The interest coverage ratio is a key indicator of a company's financial health and sustainability, as it measures the company's ability to meet its interest payments on outstanding debt. A higher ratio suggests a stronger ability to meet these obligations, while a lower ratio may indicate potential financial risk.
NextEra Energy Inc's interest coverage ratio has shown variability, which may be influenced by factors such as changes in operating income, interest rates, or debt levels. Investors and analysts should continue to monitor this ratio to assess the company's ability to manage its debt obligations effectively and sustain its financial performance.
Peer comparison
Dec 31, 2023