Spire Inc (SR)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 442,000 | 399,500 | 446,800 | 206,500 | 323,500 |
| Interest expense | US$ in thousands | 185,700 | 119,800 | 106,600 | 105,500 | 104,400 |
| Interest coverage | 2.38 | 3.33 | 4.19 | 1.96 | 3.10 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $442,000K ÷ $185,700K
= 2.38
The interest coverage ratio for Spire Inc. has shown some fluctuations over the past five years. In 2023, the interest coverage ratio was 2.25, a decrease from 3.41 in 2022 and 4.22 in 2021. This decline in the ratio suggests that Spire Inc.'s ability to meet its interest obligations from its operating income has weakened. However, it's important to note that the ratio in 2023 is still above 1, indicating that the company's earnings are sufficient to cover its interest expenses. Further analysis of the company's operating performance and debt structure would be necessary to fully assess the implications of this trend.
Peer comparison
Sep 30, 2023