Sempra Energy (SRE)
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 | 4,874,000 | 4,649,000 | 4,456,000 | 4,271,000 | 3,749,000 | 4,102,000 | 2,583,000 | 2,503,000 | 2,615,000 | 2,300,000 | 3,734,000 | 5,573,000 | 5,094,000 | 5,120,000 | 5,559,000 | 3,537,000 | 3,447,000 | 3,821,000 | 3,303,000 | 1,709,000 |
| Interest expense (ttm) | US$ in thousands | 1,309,000 | 1,253,000 | 1,223,000 | 1,177,000 | 1,054,000 | 1,218,000 | 1,195,000 | 1,182,000 | 1,198,000 | 1,039,000 | 1,044,000 | 1,060,000 | 1,081,000 | 1,098,000 | 1,113,000 | 1,097,000 | 1,077,000 | 1,027,000 | 970,000 | 940,000 |
| Interest coverage | 3.72 | 3.71 | 3.64 | 3.63 | 3.56 | 3.37 | 2.16 | 2.12 | 2.18 | 2.21 | 3.58 | 5.26 | 4.71 | 4.66 | 4.99 | 3.22 | 3.20 | 3.72 | 3.41 | 1.82 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,874,000K ÷ $1,309,000K
= 3.72
Sempra's interest coverage ratio has been relatively stable over the past eight quarters, ranging from 3.76 to 4.26. This indicates that the company has consistently generated sufficient operating income to cover its interest expenses. A higher interest coverage ratio suggests that Sempra is in a strong financial position and is less vulnerable to potential increases in interest rates or changes in operating performance. The consistent nature of the interest coverage ratio implies that Sempra has been effectively managing its debt obligations and generating consistent profits. Overall, the trend in the interest coverage ratio is positive and reflects the company's ability to meet its interest payments comfortably.
Peer comparison
Dec 31, 2023