Portland General Electric Co (POR)

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	561,000	584,000	516,000	583,878	650,836	726,781	849,754	865,790	830,772	835,756	807,729	757,759	790,764	806,780	716,781	729,786	728,794	711,803	810,811	790,821
Interest expense (ttm)	US$ in thousands	211,000	202,000	191,000	180,000	173,000	168,000	165,000	162,000	156,000	152,000	146,000	141,000	137,000	134,000	136,000	137,000	136,000	135,000	132,000	129,000
Interest coverage		2.66	2.89	2.70	3.24	3.76	4.33	5.15	5.34	5.33	5.50	5.53	5.37	5.77	6.02	5.27	5.33	5.36	5.27	6.14	6.13

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $561,000K ÷ $211,000K
= 2.66

The interest coverage ratio for Portland General Electric Co has shown a gradual decline from 6.13 as of March 31, 2020, to 2.66 as of December 31, 2024. This ratio indicates the company's ability to meet its interest obligations with its operating income.

A higher interest coverage ratio is generally considered favorable as it suggests the company is generating enough operating income to cover its interest expenses comfortably. On the other hand, a declining interest coverage ratio could raise concerns about the company's ability to service its debt effectively.

The decreasing trend in Portland General Electric Co's interest coverage ratio over the analyzed period may indicate a deterioration in its ability to cover interest payments from operating profits. This trend would warrant further investigation into the company's financial health, debt levels, profitability, and cash flow generation to assess its overall financial stability and ability to manage debt obligations effectively.