WEC Energy Group Inc (WEC)
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 | 2,164,900 | 2,263,200 | 2,028,600 | 1,787,100 | 1,747,300 |
| Interest expense | US$ in thousands | 815,300 | 726,900 | 515,100 | 471,100 | 493,700 |
| Interest coverage | 2.66 | 3.11 | 3.94 | 3.79 | 3.54 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,164,900K ÷ $815,300K
= 2.66
The interest coverage ratio of WEC Energy Group Inc has shown a generally stable trend over the past five years, ranging from 2.66 to 3.94. This ratio indicates the company's ability to meet its interest obligations using its operating income.
Despite a slight decrease in 2024 compared to previous years, the company has maintained a healthy interest coverage ratio above 2.5, indicating that WEC Energy Group Inc has sufficient operating income to cover its interest expenses. However, it's important to monitor this ratio closely in the future to ensure that the company's earnings continue to adequately cover its interest payments.
Peer comparison
Dec 31, 2024