PG&E Corp (PCG)
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 | 4,459,000 | 2,671,000 | 1,837,000 | 1,883,000 | 1,755,000 |
| Interest expense | US$ in thousands | 3,051,000 | 2,850,000 | 1,917,000 | 1,601,000 | 1,260,000 |
| Interest coverage | 1.46 | 0.94 | 0.96 | 1.18 | 1.39 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,459,000K ÷ $3,051,000K
= 1.46
The interest coverage ratio for PG&E Corp has shown a declining trend over the last five years, starting at 1.39 in December 2020 and dropping to 0.94 by December 2023, before slightly recovering to 1.46 by December 2024. This downward trend indicates that the company's ability to cover its interest expenses with its operating income has weakened, potentially signaling increasing financial risk. It is important for PG&E Corp to closely monitor its interest coverage ratio to ensure it remains at a healthy level to meet its debt obligations and maintain financial stability.
Peer comparison
Dec 31, 2024
Company name
Symbol
Interest coverage
PG&E Corp
PCG
1.46
Allete Inc
ALE
1.96
Alliant Energy Corp
LNT
2.79
Ameren Corp
AEE
2.75
Avista Corporation
AVA
49.98
CMS Energy Corporation
CMS
2.18
Consolidated Edison Inc
ED
3.94
Duke Energy Corporation
DUK
2.09
Evergy Inc. Common Stock
EVRG
2.42
Exelon Corporation
EXC
17.21
NiSource Inc
NI
19.38