Vistra Energy Corp (VST)
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 | 4,326,000 | 2,617,000 | -707,000 | -1,194,000 | 1,186,000 |
| Interest expense | US$ in thousands | 859,000 | 749,000 | 368,000 | 384,000 | 446,000 |
| Interest coverage | 5.04 | 3.49 | -1.92 | -3.11 | 2.66 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,326,000K ÷ $859,000K
= 5.04
The interest coverage ratio for Vistra Energy Corp has shown fluctuating trends over the past few years. In December 2020, the ratio was at 2.66, indicating that the company was generating enough operating income to cover its interest expenses. However, this trend reversed in the following years, with the ratio dropping to -3.11 in December 2021, -1.92 in December 2022.
A negative interest coverage ratio suggests that the company's operating income was not sufficient to cover its interest expenses, raising concerns about its financial health and ability to meet debt obligations.
Subsequently, there was a significant improvement in December 2023 and December 2024, with the interest coverage ratios climbing to 3.49 and 5.04, respectively. This positive trend indicates that the company's operating income had strengthened, allowing it to cover its interest expenses more comfortably.
Overall, Vistra Energy Corp's interest coverage ratio has exhibited volatility in recent years, highlighting the importance of monitoring the company's financial performance and debt servicing capabilities. Further analysis and monitoring of this ratio would be advisable to assess the company's ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024