PG&E Corp (PCG)
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 | 4,459,000 | 4,574,000 | 3,946,000 | 3,318,000 | 2,671,000 | 1,666,000 | 1,991,000 | 1,930,000 | 1,837,000 | 2,348,000 | 2,058,000 | 2,379,000 | 2,276,000 | 2,055,000 | 1,987,000 | -9,000 | 150,000 | -4,613,000 | -7,281,000 | -9,691,000 |
| Interest expense (ttm) | US$ in thousands | 3,051,000 | 3,248,000 | 3,135,000 | 2,963,000 | 2,850,000 | 2,486,000 | 2,329,000 | 2,100,000 | 1,917,000 | 1,751,000 | 1,625,000 | 1,612,000 | 1,601,000 | 1,621,000 | 1,613,000 | 1,414,000 | 1,260,000 | 1,563,000 | 1,224,000 | 1,085,000 |
| Interest coverage | 1.46 | 1.41 | 1.26 | 1.12 | 0.94 | 0.67 | 0.85 | 0.92 | 0.96 | 1.34 | 1.27 | 1.48 | 1.42 | 1.27 | 1.23 | -0.01 | 0.12 | -2.95 | -5.95 | -8.93 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,459,000K ÷ $3,051,000K
= 1.46
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses. Conversely, a lower ratio suggests potential difficulty in meeting interest payments.
Analyzing the interest coverage of PG&E Corp over the provided period shows a fluctuating trend. In March 2020, the interest coverage was significantly negative at -8.93, indicating a lack of earnings to cover interest payments. This negative trend continued through June 2020 and September 2020.
There was a slight improvement in December 2020, with the ratio reaching 0.12, still indicating a challenge in meeting interest obligations. The company's interest coverage remained close to breakeven from March 2021 to September 2021, indicating marginal improvement.
By December 2021, the interest coverage ratio improved to 1.42, suggesting the company's ability to cover its interest expenses had strengthened. The trend continued to improve through March 2022 to June 2022, reaching 1.27 and 1.34, respectively.
However, there was a slight decline in the interest coverage ratio by December 2022, dropping to 0.96, but still indicating an ability to meet interest payments. The ratio remained relatively stable through March 2023 to September 2023 before increasing to 1.46 by December 2024, which suggests a stronger ability to cover interest expenses.
Overall, the analysis shows that PG&E Corp's interest coverage ratio has exhibited fluctuations over the period, indicating varying levels of ability to cover interest obligations. It is essential for investors and stakeholders to monitor and assess this ratio along with other financial metrics to gauge the company's financial health and stability.
Peer comparison
Dec 31, 2024