NewJersey Resources Corporation (NJR)

Interest coverage

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	482,263	412,519	417,729	402,443	437,013	453,312	481,064	453,741	436,947	358,581	207,811	273,059	229,735	286,377	387,328	287,642	277,663	264,524	276,750	250,547
Interest expense (ttm)	US$ in thousands	63,094	96,237	126,356	124,996	123,014	115,887	107,179	95,844	85,830	79,690	77,023	78,250	78,559	75,863	72,263	71,313	67,597	59,856	56,360	49,666
Interest coverage		7.64	4.29	3.31	3.22	3.55	3.91	4.49	4.73	5.09	4.50	2.70	3.49	2.92	3.77	5.36	4.03	4.11	4.42	4.91	5.04

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $482,263K ÷ $63,094K
= 7.64

NewJersey Resources Corporation's interest coverage ratio has exhibited some fluctuations over the past few years, as indicated by the data provided. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.

Looking at the trend, we can see that the interest coverage ratio has generally been above 3, which is considered acceptable in most cases and demonstrates the company's ability to comfortably meet its interest payments. However, it is important to note that the higher the ratio, the better, as it indicates a stronger capacity to cover interest expenses.

In the most recent period, as of September 30, 2024, the interest coverage ratio stands at 7.64, which is a positive sign indicating that the company's operating income is more than sufficient to cover its interest expenses. This suggests a healthy financial position and potential for continued stability in meeting its debt obligations.

Overall, while there have been fluctuations in the interest coverage ratio over the observation period, the recent ratio of 7.64 suggests that NewJersey Resources Corporation is currently in a strong position to cover its interest payments and indicates financial health. It would be important for investors and stakeholders to continue monitoring this ratio to ensure the company's continued ability to meet its debt obligations.