PBF Energy Inc (PBF)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,928,100 | 3,707,600 | 560,600 | -1,132,100 | 583,300 |
| Interest expense | US$ in thousands | 63,800 | 246,000 | 317,500 | 258,200 | 159,600 |
| Interest coverage | 45.89 | 15.07 | 1.77 | -4.38 | 3.65 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,928,100K ÷ $63,800K
= 45.89
The interest coverage ratio for PBF Energy Inc has shown fluctuations over the past five years. In 2023, the interest coverage ratio improved significantly to 31.02, indicating the company's ability to cover its interest expenses 31.02 times with its operating income. This demonstrates a strong financial position and suggests that the company has sufficient earnings to meet its interest obligations.
The significant increase in the interest coverage ratio from 2022 to 2023 indicates improved profitability or reduced interest expenses. In contrast, the interest coverage ratio was negative in 2020, reflecting that the company's operating income was insufficient to cover the interest expenses during that period.
Overall, the trend in PBF Energy Inc's interest coverage ratio shows fluctuations, but the recent significant improvement in 2023 is a positive signal for the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023