Spire Inc (SR)

Interest coverage

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	510,700	442,000	399,500	446,800	206,500
Interest expense	US$ in thousands	201,100	185,700	119,800	106,600	105,500
Interest coverage		2.54	2.38	3.33	4.19	1.96

September 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $510,700K ÷ $201,100K
= 2.54

The interest coverage ratio for Spire Inc has shown varying trends over the past five years. In 2024, the interest coverage ratio was 2.54, indicating that the company generated earnings 2.54 times higher than its interest expenses for the year. This ratio has improved slightly compared to the previous year, where it was 2.38.

Looking back further, in 2022, the interest coverage ratio was 3.33, suggesting a stronger ability to cover interest payments relative to earnings. The highest interest coverage ratio within the period analyzed was in 2021, standing at 4.19, indicating a robust financial position with sufficient earnings to cover interest obligations.

On the other hand, the interest coverage ratio in 2020 was 1.96, signaling a lower ability to cover interest expenses with earnings. This ratio was the lowest within the period, potentially indicating increased financial risk.

Overall, the trend in Spire Inc's interest coverage ratios over the five-year period suggests fluctuations in the company's ability to cover interest payments with its earnings. It is essential for stakeholders to monitor this ratio closely to assess the company's financial health and risk profile.