National Fuel Gas Company (NFG)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 773,285 | 813,007 | 624,686 | 12,044 | 496,267 |
| Interest expense | US$ in thousands | 131,886 | 130,357 | 146,357 | 117,077 | 106,756 |
| Interest coverage | 5.86 | 6.24 | 4.27 | 0.10 | 4.65 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $773,285K ÷ $131,886K
= 5.86
The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt. National Fuel Gas Co. has demonstrated a consistent and healthy interest coverage over the past five years. The ratio has improved from 4.54 in 2021 to 5.73 in 2023, indicating a favorable trend in the company's ability to cover its interest obligations. This suggests that the company is generating ample earnings to meet its interest payments, providing a good level of financial security for its lenders. Overall, National Fuel Gas Co.'s interest coverage ratio reflects a strong financial position and ability to meet its debt obligations.
Peer comparison
Sep 30, 2023