Public Service Enterprise Group Inc (PEG)
Interest coverage
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,937,000 | 2,755,000 | 2,898,000 | 3,829,000 | 4,125,000 | 4,093,000 | 3,412,000 | 1,630,000 | 1,214,000 | -1,106,000 | -1,446,000 | -518,000 | -583,000 | 2,364,000 | 3,167,000 | 2,901,000 | 2,888,000 | 2,623,000 | 2,182,000 | 2,519,000 |
| Interest expense (ttm) | US$ in thousands | 862,000 | 815,000 | 773,000 | 748,000 | 728,000 | 706,000 | 671,000 | 628,000 | 584,000 | 565,000 | 562,000 | 571,000 | 584,000 | 589,000 | 593,000 | 600,000 | 605,000 | 603,000 | 589,000 | 569,000 |
| Interest coverage | 3.41 | 3.38 | 3.75 | 5.12 | 5.67 | 5.80 | 5.08 | 2.60 | 2.08 | -1.96 | -2.57 | -0.91 | -1.00 | 4.01 | 5.34 | 4.84 | 4.77 | 4.35 | 3.70 | 4.43 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,937,000K ÷ $862,000K
= 3.41
Public Service Enterprise Group Inc's interest coverage ratio has exhibited fluctuating trends over the provided time period. The interest coverage ratio, representing the company's ability to meet its interest obligations from its operating income, was relatively stable in the range of 4 to 5 between December 2019 and March 2021, indicating a healthy ability to cover interest payments.
However, there was a significant decline in the interest coverage ratio from June 2021 to September 2021, dropping to negative territory. This negative trend continued into December 2021 and March 2022, indicating a potential strain on the company's ability to meet its interest obligations from its operating income during those periods.
The company then showed signs of improvement with positive interest coverage ratios from June 2022 to December 2024, though they remained below the levels seen in the earlier period. The interest coverage ratio reached a peak of 5.80 in June 2023, suggesting a better ability to cover interest expenses from operating income.
Overall, fluctuations in interest coverage ratios suggest varying levels of financial health and ability to service debt obligations over the analyzed time frame. Investors and stakeholders may monitor these ratios closely to assess the company's financial stability and risk profile.
Peer comparison
Dec 31, 2024