Portland General Electric Co (POR)
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 | 561,000 | 446,000 | 428,000 | 404,000 | 264,000 |
| Interest expense | US$ in thousands | 211,000 | 173,000 | 156,000 | 137,000 | 136,000 |
| Interest coverage | 2.66 | 2.58 | 2.74 | 2.95 | 1.94 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $561,000K ÷ $211,000K
= 2.66
Portland General Electric Co's interest coverage ratio has shown a fluctuating trend over the past five years. Starting at 1.94 in December 31, 2020, the ratio increased to 2.95 by December 31, 2021, indicating the company's ability to cover its interest payments improved. However, there was a slight decline in the ratio to 2.74 by December 31, 2022, followed by a further decrease to 2.58 by December 31, 2023. Despite these declines, the interest coverage ratio remained above 2, suggesting that the company is still generating sufficient operating income to cover its interest expenses. In the most recent period, the ratio saw a slight uptick to 2.66 by December 31, 2024, indicating a slight improvement in the company's ability to cover its interest payments compared to the previous year. Overall, while there have been fluctuations in the interest coverage ratio, Portland General Electric Co has managed to maintain a level of financial stability with a generally adequate ability to meet its interest obligations.
Peer comparison
Dec 31, 2024