OGE Energy Corporation (OGE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 775,100 | 694,400 | 649,500 | 544,200 | 522,200 |
| Interest expense | US$ in thousands | 254,500 | 221,400 | 166,300 | 158,300 | 158,500 |
| Interest coverage | 3.05 | 3.14 | 3.91 | 3.44 | 3.29 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $775,100K ÷ $254,500K
= 3.05
The interest coverage ratio for OGE Energy Corporation has shown a generally stable trend over the past five years. Starting at 3.29 in December 31, 2020, it increased to 3.44 by December 31, 2021, and further improved to 3.91 by December 31, 2022. However, there was a slight dip in coverage to 3.14 by December 31, 2023, followed by a decrease to 3.05 by December 31, 2024.
Overall, the company has maintained a reasonable level of interest coverage ratio, indicating its ability to comfortably meet its interest obligations with its operating income. It is important for investors and creditors to monitor this ratio to ensure the company's financial health and ability to service its debt commitments.
Peer comparison
Dec 31, 2024