OGE Energy Corporation (OGE)

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 775,100 693,600 707,400 681,900 694,400 683,400 702,300 670,100 951,900 941,300 912,800 947,000 675,000 676,200 621,100 612,500 -178,300 -190,500 -152,200 -159,200
Interest expense (ttm) US$ in thousands 254,500 247,800 241,000 233,800 221,400 204,500 189,300 174,000 166,300 164,200 161,500 159,000 158,300 158,400 158,700 159,600 158,500 156,700 156,500 151,600
Interest coverage 3.05 2.80 2.94 2.92 3.14 3.34 3.71 3.85 5.72 5.73 5.65 5.96 4.26 4.27 3.91 3.84 -1.12 -1.22 -0.97 -1.05

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $775,100K ÷ $254,500K
= 3.05

The interest coverage ratio of OGE Energy Corporation has shown fluctuations over the years. From the data provided, the interest coverage ratio was negative in the earlier quarters of 2020, indicating that the company's earnings were not sufficient to cover its interest expenses during that period.

However, there was a significant improvement in the interest coverage ratio starting from March 31, 2021, where the ratio improved to 3.84 and continued to strengthen over the following quarters. This indicates that the company's earnings became more than sufficient to cover its interest expenses, reflecting a healthier financial position.

The interest coverage ratio peaked at 5.96 on March 31, 2022, and remained relatively stable around the 5.5 to 6 range until September 30, 2022. However, there was a slight decline in the ratio in the subsequent quarters, but it remained above 3, indicating that the company's earnings continued to comfortably cover its interest expenses.

Overall, the trend in the interest coverage ratio of OGE Energy Corporation shows a positive trajectory, reflecting improved financial stability and the ability to meet its interest obligations with its earnings.