Northwest Natural Gas Co (NWN)

Interest coverage

Dec 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 191,162 186,925 192,754 190,891 194,572 196,300 195,582 195,504 169,634 147,949 139,818 130,608 126,723 137,395 143,942 145,289 134,407 120,809 123,783 131,211
Interest expense (ttm) US$ in thousands 80,092 78,792 79,138 78,801 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
Interest coverage 2.39 2.37 2.44 2.42 2.54 2.66 2.90 3.26 3.19 3.13 3.08 2.91 2.85 3.12 3.42 3.32 3.12 2.80 2.75 3.06

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $191,162K ÷ $80,092K
= 2.39

The interest coverage ratio for Northwest Natural Gas Co has shown some fluctuations over the past few years. It indicates the company's ability to pay its interest expenses with its operating income.

From March 31, 2020, to around June 30, 2021, the interest coverage ratio generally improved, indicating that the company's operating income was sufficient to cover its interest expenses. However, from December 31, 2021, to September 30, 2024, the interest coverage ratio declined gradually, suggesting potential strain on the company's ability to cover its interest payments.

The ratio peaked at 3.42 on June 30, 2021, indicating a strong ability to cover interest payments, while reaching its lowest point at 2.37 on September 30, 2024, reflecting a decrease in the company's ability to cover interest expenses.

Overall, fluctuations in the interest coverage ratio of Northwest Natural Gas Co over the analyzed period highlight the importance of monitoring the company's operational performance and financial health to ensure its ability to meet its debt obligations.