WEC Energy Group Inc (WEC)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,555,000	2,262,500	2,346,600	2,411,600	2,263,200	2,291,100	2,235,200	2,189,000	2,247,800	2,147,000	2,101,900	2,080,700	1,972,700	1,991,700	1,970,200	1,940,700	1,908,000	1,900,100	1,835,500	1,790,300
Interest expense (ttm)	US$ in thousands	808,700	790,300	768,600	746,700	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
Interest coverage		3.16	2.86	3.05	3.23	3.11	3.35	3.56	3.84	4.36	4.49	4.48	4.43	4.19	4.19	4.11	4.01	3.86	3.78	3.62	3.53

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,555,000K ÷ $808,700K
= 3.16

The interest coverage ratio for WEC Energy Group Inc has shown a generally positive trend over the past few years. It increased steadily from 3.53 as of March 31, 2020, to a peak of 4.49 as of September 30, 2022. This indicates the company's ability to meet its interest obligations from its operating income improved during this period.

However, starting from December 31, 2022, the interest coverage ratio started to decrease, reaching a low of 2.86 as of September 30, 2024. This decrease may raise concerns about the company's ability to cover its interest expenses with its operating income. It bounced back slightly to 3.16 as of December 31, 2024.

Overall, the declining trend in the interest coverage ratio from late 2022 to 2024 suggests that WEC Energy Group Inc may be facing challenges in generating sufficient operating income to cover its interest expenses during this period. Investors and stakeholders may want to monitor this ratio closely to assess the company's financial health and debt-servicing capability.