SJW Group Common Stock (SJW)

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	174,327	157,087	129,804	123,186	117,296
Interest expense	US$ in thousands	71,390	66,144	58,062	54,339	54,255
Interest coverage		2.44	2.37	2.24	2.27	2.16

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $174,327K ÷ $71,390K
= 2.44

The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. In the case of SJW Group Common Stock, the interest coverage ratio has shown a generally stable trend over the past five years.

As of December 31, 2020, SJW Group had an interest coverage ratio of 2.16, indicating that the company's operating income was sufficient to cover its interest expenses 2.16 times over. Over the subsequent years, the interest coverage ratio improved slightly to 2.27 by December 31, 2021, and remained relatively consistent at 2.24 by December 31, 2022.

By December 31, 2023, the interest coverage ratio increased to 2.37, reflecting a slightly better ability to cover interest costs. In the most recent year, as of December 31, 2024, SJW Group's interest coverage ratio further improved to 2.44, indicating a continued strengthening of the company's ability to fulfill its interest payment obligations.

Overall, the consistent and improving trend in the interest coverage ratio for SJW Group Common Stock suggests that the company has been effectively managing its interest expenses relative to its operating income over the analyzed period.