Williams Companies Inc (WMB)
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 | 5,420,000 | 4,804,000 | 4,647,000 | 4,342,000 | 3,621,000 | 3,522,000 | 3,045,000 | 3,130,000 | 3,207,000 | 2,553,000 | 2,755,000 | 2,748,000 | 1,462,000 | 1,514,000 | 1,396,000 | 1,386,000 | 2,371,000 | 1,422,000 | 1,417,000 | 1,175,000 |
| Interest expense (ttm) | US$ in thousands | 1,236,000 | 1,203,000 | 1,180,000 | 1,155,000 | 1,147,000 | 1,153,000 | 1,154,000 | 1,171,000 | 1,179,000 | 1,174,000 | 1,174,000 | 1,170,000 | 1,172,000 | 1,180,000 | 1,184,000 | 1,186,000 | 1,186,000 | 1,182,000 | 1,156,000 | 1,135,000 |
| Interest coverage | 4.39 | 3.99 | 3.94 | 3.76 | 3.16 | 3.05 | 2.64 | 2.67 | 2.72 | 2.17 | 2.35 | 2.35 | 1.25 | 1.28 | 1.18 | 1.17 | 2.00 | 1.20 | 1.23 | 1.04 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,420,000K ÷ $1,236,000K
= 4.39
Williams Cos Inc's interest coverage has shown a generally improving trend over the past eight quarters, indicating the company's ability to meet its interest obligations using its operating income. The interest coverage ratio has increased from 2.70 in Q1 2022 to 4.10 in Q4 2023, suggesting that the company's earnings are sufficient to cover its interest expenses more than four times. This improvement in interest coverage indicates a stronger financial position and reduced financial risk for Williams Cos Inc. It is important to note that maintaining a consistently high interest coverage ratio is essential for creditors' confidence in the company's ability to meet its debt obligations.
Peer comparison
Dec 31, 2023