PG&E Corp (PCG)

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 2,671,000 1,837,000 1,883,000 1,755,000 -10,094,000
Interest expense US$ in thousands 2,850,000 1,917,000 1,601,000 1,260,000 934,000
Interest coverage 0.94 0.96 1.18 1.39 -10.81

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,671,000K ÷ $2,850,000K
= 0.94

Interest coverage measures a company's ability to pay interest expenses on its outstanding debt using its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to meet interest obligations.

For PG&E Corp., the interest coverage ratio has fluctuated over the past five years. In 2023, the interest coverage ratio improved to 1.78, compared to 1.53 in 2022 and 1.35 in 2021. This suggests that PG&E Corp.'s ability to cover its interest expenses with its EBIT has strengthened in the most recent year.

However, it is important to note that the ratio decreased from 1.64 in 2020 to 1.57 in 2019, indicating some instability in PG&E Corp.'s ability to cover interest expenses in those years.

Overall, PG&E Corp.'s interest coverage ratio has shown some variability in the past five years, with the latest data indicating an improvement in the company's ability to service its interest payments with its earnings. Investors and creditors may continue to monitor PG&E Corp.'s interest coverage ratio to assess the company's financial health and ability to manage its debt obligations effectively.


Peer comparison

Dec 31, 2023