National Fuel Gas Company (NFG)

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	707,886	755,146	807,638	834,239	859,228	814,517	768,995	738,368	706,041	639,924	333,672	263,999	25,380	29,858	287,777	320,207	498,146	511,809	512,531	513,707
Interest expense (ttm)	US$ in thousands	133,173	131,885	132,479	134,360	132,514	130,358	127,293	124,552	143,472	146,356	150,286	147,614	124,258	117,077	109,395	107,340	107,238	106,756	109,445	111,123
Interest coverage		5.32	5.73	6.10	6.21	6.48	6.25	6.04	5.93	4.92	4.37	2.22	1.79	0.20	0.26	2.63	2.98	4.65	4.79	4.68	4.62

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $707,886K ÷ $133,173K
= 5.32

The interest coverage ratio of National Fuel Gas Co. has been relatively stable over the past eight quarters, ranging from 5.32 to 6.39. This indicates that the company has consistently generated sufficient earnings before interest and taxes (EBIT) to cover its interest expenses, with a comfortable margin of safety. A higher interest coverage ratio is generally seen as a positive sign, as it suggests the company is more capable of meeting its interest obligations.

The gradual increase in the interest coverage ratio from Q1 2023 to Q1 2024 reflects a potential improvement in the company's ability to service its debt obligations. However, it is important to monitor this ratio over time to ensure that the trend continues and that the company's financial health remains strong.

Overall, based on the historical data provided, National Fuel Gas Co. appears to have a strong interest coverage ratio, indicating a sound financial position in terms of managing its interest expenses.