Nextera Energy Inc (NEE)
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 | 7,988,000 | 9,601,000 | 8,822,000 | 10,511,000 | 10,321,000 | 10,629,000 | 11,211,000 | 9,148,000 | 5,499,000 | 4,975,000 | 3,239,000 | 1,782,000 | 4,612,000 | 3,104,000 | 4,180,000 | 5,632,000 | 3,974,000 | 5,180,000 | 4,748,000 | 4,900,000 |
| Interest expense (ttm) | US$ in thousands | 3,685,000 | 4,940,000 | 3,149,000 | 2,464,000 | 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 |
| Interest coverage | 2.17 | 1.94 | 2.80 | 4.27 | 3.10 | 5.24 | 4.96 | 3.90 | 4.22 | 4.09 | 2.51 | 0.97 | 2.18 | 1.91 | 2.79 | 5.31 | 2.04 | 2.56 | 1.85 | 1.72 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,988,000K ÷ $3,685,000K
= 2.17
Nextera Energy Inc's interest coverage ratio shows the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). The trend of the interest coverage ratio fluctuated over the period from March 31, 2020, to December 31, 2024.
The interest coverage ratio started at 1.72 on March 31, 2020, indicating that the company's EBIT was able to cover its interest expenses 1.72 times. The ratio improved to 5.31 on March 31, 2021, indicating a significant increase in the company's ability to cover its interest expenses. However, the ratio decreased to 0.97 on March 31, 2022, indicating a decline in the company's ability to cover its interest expenses.
Throughout the following quarters, the interest coverage ratio fluctuated but generally remained above 1, indicating that Nextera Energy Inc was able to meet its interest payments with its earnings. The ratio peaked at 5.24 on September 30, 2023, showing a strong ability to cover interest expenses, and decreased to 1.94 on September 30, 2024.
Overall, Nextera Energy Inc's interest coverage ratio fluctuated over the analyzed period, with some quarters showing a stronger ability to cover interest expenses compared to others. Investors and analysts should continue monitoring this ratio to assess the company's ability to meet its interest obligations.
Peer comparison
Dec 31, 2024