Vistra Energy Corp (VST)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,741,000 | 2,445,000 | 2,606,000 | 244,000 | -1,209,000 | -124,000 | -937,000 | 782,000 | -1,348,000 | -2,238,000 | -1,657,000 | -1,338,000 | 1,534,000 | 1,822,000 | 1,461,000 | 1,864,000 | 2,015,000 | 1,703,000 | 1,999,000 | 1,401,000 |
| Interest expense (ttm) | US$ in thousands | 740,000 | 632,000 | 560,000 | 569,000 | 369,000 | 283,000 | 336,000 | 362,000 | 384,000 | 377,000 | 354,000 | 360,000 | 631,000 | 619,000 | 742,000 | 875,000 | 797,000 | 1,001,000 | 931,000 | 803,000 |
| Interest coverage | 3.70 | 3.87 | 4.65 | 0.43 | -3.28 | -0.44 | -2.79 | 2.16 | -3.51 | -5.94 | -4.68 | -3.72 | 2.43 | 2.94 | 1.97 | 2.13 | 2.53 | 1.70 | 2.15 | 1.74 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,741,000K ÷ $740,000K
= 3.70
The interest coverage ratio for Vistra Corp exhibits fluctuating trends over the past eight quarters. In Q4 2023, the interest coverage ratio improved to 5.10, indicating the company's ability to cover interest expenses more than five times with its operating profits. This improvement from the previous quarter's ratio of 3.93 suggests enhanced financial health. However, the ratio had significantly deteriorated in Q1 2023 to 0.55, reflecting a potential challenge in covering interest payments with operating earnings. The negative ratios recorded in Q4 2022, Q3 2022, and Q2 2022 indicate that the company's operating profits were insufficient to cover interest expenses during those periods. Overall, Vistra Corp has displayed varying levels of interest coverage, emphasizing the importance of sustainable earnings to support debt obligations.
Peer comparison
Dec 31, 2023