Portland General Electric Co (POR)
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 | 396,000 | 397,000 | 378,000 | 269,000 | 353,000 |
| Interest expense | US$ in thousands | 173,000 | 156,000 | 137,000 | 136,000 | 128,000 |
| Interest coverage | 2.29 | 2.54 | 2.76 | 1.98 | 2.76 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $396,000K ÷ $173,000K
= 2.29
The interest coverage ratio for Portland General Electric Co has been fluctuating over the past five years. It decreased from 2.76 in 2019 to 1.98 in 2020, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income. However, the ratio improved in the following years, reaching 2.54 in 2022 and 2.29 in 2023.
A general interpretation of the trend suggests that the company's ability to cover its interest expenses has been relatively stable, with some fluctuations. A higher interest coverage ratio indicates a greater ability to meet interest obligations and suggests lower financial risk for the company.
Overall, the interest coverage ratio of Portland General Electric Co over the past five years reflects a mixed performance in terms of its ability to cover interest expenses with operating income. Further analysis and consideration of other financial metrics would provide a more complete assessment of the company's financial health and performance.
Peer comparison
Dec 31, 2023