WEC Energy Group Inc (WEC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,908,000 | 1,924,200 | 1,714,900 | 1,706,100 | 1,531,400 |
| Interest expense | US$ in thousands | 726,900 | 515,100 | 471,100 | 493,700 | 501,500 |
| Interest coverage | 2.62 | 3.74 | 3.64 | 3.46 | 3.05 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,908,000K ÷ $726,900K
= 2.62
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest payments.
WEC Energy Group Inc's interest coverage ratio has been relatively consistent over the past five years, ranging from 3.12 to 4.11. This indicates that the company has had a sufficient level of operating income to cover its interest expenses.
The slight fluctuations in the interest coverage ratio over the years may be influenced by changes in the company's operating income and interest expenses. Overall, the company's interest coverage ratio suggests that WEC Energy Group Inc has been managing its interest obligations effectively.
Peer comparison
Dec 31, 2023