One Gas Inc (OGS)
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 | 403,687 | 387,399 | 383,325 | 379,549 | 384,492 | 383,096 | 372,584 | 360,974 | 349,331 | 328,155 | 320,312 | 317,279 | 307,050 | 305,135 | 306,010 | 297,812 | 295,288 | 292,476 | 288,979 | 291,650 |
| Interest expense (ttm) | US$ in thousands | 147,235 | 137,253 | 126,066 | 116,581 | 115,339 | 111,601 | 103,191 | 92,026 | 77,506 | 65,939 | 61,780 | 60,456 | 60,301 | 61,255 | 61,405 | 62,252 | 62,505 | 62,791 | 63,032 | 62,588 |
| Interest coverage | 2.74 | 2.82 | 3.04 | 3.26 | 3.33 | 3.43 | 3.61 | 3.92 | 4.51 | 4.98 | 5.18 | 5.25 | 5.09 | 4.98 | 4.98 | 4.78 | 4.72 | 4.66 | 4.58 | 4.66 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $403,687K ÷ $147,235K
= 2.74
The interest coverage ratio of One Gas Inc has shown a decreasing trend from March 2020 to December 2024. The ratio started at 4.66 in March 2020 and reached its peak at 5.25 in March 2022 before declining. As of December 2024, the interest coverage ratio stands at 2.74.
This downward trend in the interest coverage ratio indicates a potential increase in the company's financial risk and its ability to service its debt obligations. A lower interest coverage ratio suggests that the company may be less capable of meeting its interest payments using its operating income.
One Gas Inc should closely monitor this ratio and take proactive measures to improve its financial health, such as increasing earnings or reducing debt levels, to ensure its long-term sustainability and financial stability.
Peer comparison
Dec 31, 2024