Southwestern Energy Company (SWN)
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 | 1,442,000 | 5,305,000 | 5,714,000 | 6,701,000 | 2,084,000 | 1,530,000 | -804,000 | -2,630,000 | 111,000 | -2,351,000 | -1,099,000 | -1,378,000 | -2,611,000 | -2,432,000 | -1,785,000 | -759,000 | 545,000 | 758,000 | 748,000 | 663,000 |
| Interest expense (ttm) | US$ in thousands | 142,000 | 151,000 | 165,000 | 179,000 | 184,000 | 180,000 | 164,000 | 146,000 | 136,000 | 126,000 | 114,000 | 106,000 | 94,000 | 82,000 | 77,000 | 70,000 | 65,000 | 70,000 | 82,000 | 99,000 |
| Interest coverage | 10.15 | 35.13 | 34.63 | 37.44 | 11.33 | 8.50 | -4.90 | -18.01 | 0.82 | -18.66 | -9.64 | -13.00 | -27.78 | -29.66 | -23.18 | -10.84 | 8.38 | 10.83 | 9.12 | 6.70 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,442,000K ÷ $142,000K
= 10.15
Southwestern Energy Company's interest coverage ratio has shown fluctuations over the past eight quarters. The interest coverage ratio indicates the company's ability to meet its interest payments on outstanding debt using its earnings before interest and taxes (EBIT).
In Q1 2023, the interest coverage ratio was at its lowest at 37.22, indicating that the company's EBIT was 37.22 times larger than its interest expenses for that quarter. This suggests a solid ability to meet interest obligations. The ratio improved in Q2 and Q3 2023, reaching 27.11 and 13.68, respectively, showing a positive trend in the company's financial health.
However, in Q4 2023, the interest coverage ratio dropped to 5.18. While this is still above 1, which is generally considered the minimum acceptable level, the substantial decrease could indicate a potential strain on the company's ability to cover interest payments with its operating income.
Overall, the varying trend in Southwestern Energy Company's interest coverage ratio over the past eight quarters suggests that the company should continue to monitor its financial performance and take necessary steps to maintain a healthy balance between earnings and interest expenses.
Peer comparison
Dec 31, 2023