SunCoke Energy Inc (SXC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 151,900 | 125,100 | 152,800 | 108,700 | 75,400 |
| Interest expense | US$ in thousands | 23,400 | 27,300 | 32,000 | 42,500 | 56,300 |
| Interest coverage | 6.49 | 4.58 | 4.78 | 2.56 | 1.34 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $151,900K ÷ $23,400K
= 6.49
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. SunCoke Energy Inc's interest coverage has shown a positive trend over the years, starting at 1.34 in December 2020 and increasing consistently to 6.49 by December 2024. This improvement signifies that the company's operating income has been sufficient to cover its interest expenses with a growing margin of safety. A higher interest coverage ratio suggests that SunCoke Energy Inc is in a better position to meet its debt obligations and indicates a lower risk of default. Overall, the increasing trend in interest coverage is a positive sign of the company's financial health and ability to manage debt effectively.
Peer comparison
Dec 31, 2024