Northwest Natural Gas Co (NWN)

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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	184,941	191,001	193,651	193,347	167,477	156,428	156,964	156,049	163,117	167,490	170,293	166,611	148,351	134,765	136,719	143,875	143,474	144,762
Interest expense (ttm)	US$ in thousands	76,566	73,767	67,415	60,021	53,247	47,313	45,434	44,882	44,486	44,042	42,032	43,710	43,052	43,217	45,000	42,948	42,685	41,815
Interest coverage		2.42	2.59	2.87	3.22	3.15	3.31	3.45	3.48	3.67	3.80	4.05	3.81	3.45	3.12	3.04	3.35	3.36	3.46

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $184,941K ÷ $76,566K
= 2.42

The interest coverage ratio for Northwest Natural Holding Co has shown a consistent trend of decline over the past year, decreasing from 3.48 in Q1 2022 to 2.42 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. Despite fluctuations in the ratio quarter to quarter, the overall downward trend suggests a potentially increasing financial risk for the company in meeting its interest obligations. It would be important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively.