Spire Inc (SR)

Interest coverage

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	510,700	495,900	481,100	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
Interest expense (ttm)	US$ in thousands	201,100	199,800	197,700	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
Interest coverage		2.54	2.48	2.43	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

September 30, 2024 calculation

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

Interest coverage is a financial ratio that indicates a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations.

Analyzing the interest coverage ratios of Spire Inc over the past few quarters, we observe fluctuations in the ratio. The interest coverage ratio has ranged from a low of 1.76 in December 2019 to a high of 4.97 in June 2021. The most recent ratio as of September 2024 stands at 2.54, indicating that the company generated earnings 2.54 times its interest expenses for that quarter.

Overall, the trend in Spire Inc's interest coverage ratio shows some volatility but generally indicates the company's ability to comfortably cover its interest payments. It is important for investors and lenders to monitor this ratio over time to assess the company's financial health and debt servicing capacity.