Sempra Energy (SRE)
Interest coverage
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,026,000 | 3,958,000 | 4,240,000 | 4,441,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 945,000 | 1,096,000 | 1,242,000 | 1,248,000 | 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 |
| Interest coverage | 4.26 | 3.61 | 3.41 | 3.56 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,026,000K ÷ $945,000K
= 4.26
Sempra Energy's interest coverage ratio has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio represents the company's ability to meet its interest payments on outstanding debt.
From March 31, 2020, to June 30, 2021, the interest coverage ratio of Sempra Energy increased steadily from 3.22 to 5.26, indicating a stronger ability to cover interest expenses. However, from September 30, 2021, to December 31, 2024, the interest coverage ratio fluctuated in a range between 2.12 and 4.26.
The decrease in the interest coverage ratio from June 30, 2021, to September 30, 2022, and the subsequent fluctuation in the ratio could suggest a potential strain on the company's ability to cover its interest expenses with its operating income during this period. It is essential for investors and stakeholders to monitor these fluctuations in the interest coverage ratio as it indicates the company's financial health and its ability to meet debt obligations.
Peer comparison
Dec 31, 2024