SJW Group Common Stock (SJW)

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	171,676	165,842	165,273	155,730	151,981	167,695	149,615	144,611	131,585	114,615	110,520	120,115	123,186	112,459	120,952	119,253	119,830	110,906	84,961	71,737
Interest expense (ttm)	US$ in thousands	71,390	70,625	69,853	67,956	66,144	64,815	62,261	60,105	58,062	55,844	55,189	54,629	54,339	55,272	54,911	54,410	54,255	52,341	45,755	39,289
Interest coverage		2.40	2.35	2.37	2.29	2.30	2.59	2.40	2.41	2.27	2.05	2.00	2.20	2.27	2.03	2.20	2.19	2.21	2.12	1.86	1.83

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $171,676K ÷ $71,390K
= 2.40

The interest coverage ratio for SJW Group Common Stock has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The ratio has generally been above 1, indicating that the company's operating income is more than sufficient to cover its interest expenses.

Specifically, the interest coverage ratio has ranged from a low of 1.83 on March 31, 2020, to a high of 2.59 on September 30, 2023. This suggests that SJW Group Common Stock has been able to comfortably meet its interest obligations throughout the period under review.

Although there have been some fluctuations in the ratio, it is important to note that the overall trend has been positive, with the ratio generally trending upward from 2020 to 2024. This indicates an improvement in the company's ability to service its debt with its operating income.

Overall, based on the interest coverage ratios provided, SJW Group Common Stock appears to have maintained a healthy financial position in terms of its ability to cover interest expenses with operating income.