National Fuel Gas Company (NFG)

Interest coverage

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	225,950	773,285	813,007	624,686	12,044
Interest expense	US$ in thousands	138,695	131,886	130,357	146,357	117,077
Interest coverage		1.63	5.86	6.24	4.27	0.10

September 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $225,950K ÷ $138,695K
= 1.63

The interest coverage ratio for National Fuel Gas Company has varied over the past five years. In 2024, the interest coverage ratio was 1.63, indicating that the company's earnings before interest and taxes were sufficient to cover its interest expenses 1.63 times. This represented a decrease from the previous year's ratio of 5.86 and a significant decline from the higher ratios of 6.24 and 4.27 in 2022 and 2021, respectively. The low interest coverage ratio of 0.10 in 2020 reflected a situation where the company's earnings were barely sufficient to cover its interest expenses.

Overall, the trend in National Fuel Gas Company's interest coverage ratio shows fluctuation, with higher ratios in earlier years compared to the more recent years. A lower interest coverage ratio can indicate a higher level of financial risk, as it suggests that the company may have difficulty meeting its interest obligations from its earnings. It would be important for investors and stakeholders to monitor this ratio closely to assess the company's ability to manage its debt and interest payments effectively.