UNITIL Corporation (UTL)

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 98,800 93,300 80,900 74,800 68,800
Interest expense US$ in thousands 37,700 34,900 28,300 27,200 26,400
Interest coverage 2.62 2.67 2.86 2.75 2.61

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $98,800K ÷ $37,700K
= 2.62

The interest coverage ratio for UNITIL Corporation has been relatively stable over the past five years, ranging from 2.61 to 2.86. This ratio indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio suggests that the company is more capable of servicing its debt, while a lower ratio may signal potential financial distress. UNITIL's interest coverage ratios around the range of 2.61 to 2.86 indicate that the company has been able to cover its interest expenses comfortably, although there may be a need to monitor any significant changes in the future to ensure the company's financial health and ability to meet its debt obligations.