WEC Energy Group Inc (WEC)

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	1,908,000	1,947,000	1,879,200	1,862,100	1,924,200	1,870,600	1,856,400	1,817,000	1,714,900	1,758,600	1,738,800	1,708,800	1,706,100	1,698,700	1,639,400	1,615,200	1,531,400	1,458,100	1,449,900	1,466,100
Interest expense (ttm)	US$ in thousands	726,900	683,600	628,600	569,700	515,100	478,500	469,000	469,200	471,100	475,400	479,400	483,800	493,700	503,000	506,800	506,500	501,500	492,200	478,400	462,800
Interest coverage		2.62	2.85	2.99	3.27	3.74	3.91	3.96	3.87	3.64	3.70	3.63	3.53	3.46	3.38	3.23	3.19	3.05	2.96	3.03	3.17

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,908,000K ÷ $726,900K
= 2.62

The interest coverage ratio for WEC Energy Group Inc has been relatively stable over the past eight quarters, ranging from 3.11 to 4.30. This indicates that the company generates sufficient operating income to cover its interest expenses. A ratio above 1 indicates that the company is able to meet its interest obligations comfortably. The decreasing trend in interest coverage from Q1 2022 to Q4 2023 could be a cause for concern as it may suggest a potential decrease in the company's ability to service its debt obligations. Overall, a consistent interest coverage ratio above 3 demonstrates WEC Energy Group Inc's strong financial position and ability to manage its debt effectively.