Spire Inc (SR)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	442,500	442,000	598,000	605,500	580,000	526,500	473,000	479,400	496,800	531,300	429,600	303,900	235,700	206,500	185,800	299,000	323,600	323,500	323,700	359,800
Interest expense (ttm)	US$ in thousands	192,700	185,700	181,100	163,700	144,000	129,000	114,000	111,600	109,900	107,000	103,600	103,100	104,500	105,500	105,600	104,800	105,200	104,400	103,500	102,100
Interest coverage		2.30	2.38	3.30	3.70	4.03	4.08	4.15	4.30	4.52	4.97	4.15	2.95	2.26	1.96	1.76	2.85	3.08	3.10	3.13	3.52

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $442,500K ÷ $192,700K
= 2.30

Based on the data provided, Spire Inc.'s interest coverage ratio has shown a declining trend from Q2 2022 to Q1 2024. This ratio represents the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

The decreasing trend in Spire Inc.'s interest coverage ratio may raise concerns about its ability to comfortably cover its interest expenses with its operating income. This could potentially indicate increased financial risk for the company, as lower interest coverage ratios may suggest a higher likelihood of default on its debt obligations.

It is important for investors and stakeholders to monitor Spire Inc.'s interest coverage ratio closely to assess its financial health and ability to manage its debt effectively. Management should consider strategies to improve the interest coverage ratio, such as increasing operating income, reducing debt levels, or refinancing debt at lower interest rates.