SunCoke Energy Inc (SXC)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	119,100	149,500	104,200	70,300	-146,700
Interest expense	US$ in thousands	27,300	32,000	42,500	56,300	60,300
Interest coverage		4.36	4.67	2.45	1.25	-2.43

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $119,100K ÷ $27,300K
= 4.36

SunCoke Energy Inc's interest coverage has shown variability over the past five years. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a greater ability to meet interest obligations.

In 2023, SunCoke Energy Inc's interest coverage stood at 4.58, indicating the company generated approximately 4.58 times the earnings needed to cover its interest expense for that year. This figure decreased slightly from 4.80 in 2022, suggesting a slightly reduced ability to cover interest payments.

Comparing these recent ratios with the figures from 2021 and 2020 reveals an improving trend in the company's interest coverage ability. In 2021, the interest coverage ratio was 3.33, significantly higher than the previous year's ratio of 1.24. This improvement continued from 2020, where the interest coverage ratio was at a relatively low 1.24, indicating a potentially strained ability to meet interest obligations.

It's essential to note that in 2019, SunCoke Energy Inc had an interest coverage ratio of 1.71, showcasing a slight increase from the previous year, but still relatively low. The subsequent improvements in the following years signify a positive trend towards a healthier ability to meet interest payments.

Overall, while SunCoke Energy Inc's interest coverage ratio has shown variability, the recent figures indicate a generally improving trend in the company's ability to cover its interest obligations in the last few years.