SunCoke Energy Inc (SXC)
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 | 151,900 | 142,600 | 125,100 | 127,900 | 125,100 | 121,900 | 139,800 | 136,800 | 153,700 | 158,700 | 152,500 | 151,900 | 141,500 | 115,800 | 88,700 | 79,700 | 69,500 | 83,700 | -141,500 | -144,800 |
| Interest expense (ttm) | US$ in thousands | 23,400 | 24,100 | 25,000 | 26,400 | 27,300 | 28,700 | 30,100 | 31,200 | 32,000 | 32,000 | 31,900 | 37,800 | 42,500 | 47,900 | 53,700 | 54,400 | 56,300 | 57,900 | 59,900 | 60,100 |
| Interest coverage | 6.49 | 5.92 | 5.00 | 4.84 | 4.58 | 4.25 | 4.64 | 4.38 | 4.80 | 4.96 | 4.78 | 4.02 | 3.33 | 2.42 | 1.65 | 1.47 | 1.23 | 1.45 | -2.36 | -2.41 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $151,900K ÷ $23,400K
= 6.49
SunCoke Energy Inc's interest coverage ratio has shown a significant improvement over the recent quarters. Starting from negative levels in 2020, reaching as low as -2.41 and -2.36 in March and June, there was a notable turnaround by September 2020 when the ratio improved to 1.45, indicating that the company's operating income was 1.45 times its interest expenses.
Since then, SunCoke Energy Inc has continued to enhance its interest coverage, with the ratio consistently increasing quarter by quarter. As of December 2024, the interest coverage ratio stood at 6.49, reflecting a positive trend and indicating that the company's earnings are comfortably able to cover its interest obligations nearly 6.5 times over. This improvement suggests a strengthening financial position and a reduced risk of default due to insufficient earnings to cover debt payments.
Overall, the trend in SunCoke Energy Inc's interest coverage ratio demonstrates a positive trajectory, highlighting the company's improving ability to meet its interest payments from its operating income, potentially reassuring for investors and creditors.
Peer comparison
Dec 31, 2024