Xcel Energy Inc (XEL)
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 | 2,680,000 | 2,554,000 | 2,369,000 | 2,307,000 | 2,273,000 |
| Interest expense | US$ in thousands | 1,055,000 | 953,000 | 842,000 | 840,000 | 773,000 |
| Interest coverage | 2.54 | 2.68 | 2.81 | 2.75 | 2.94 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,680,000K ÷ $1,055,000K
= 2.54
Xcel Energy, Inc.'s interest coverage ratio has shown a slight decrease over the years, from 2.77 in 2019 to 2.49 in 2023. This ratio indicates the company's ability to meet its interest obligations from its operating income.
Although the interest coverage ratio has declined slightly, it still remains above 1, which implies that Xcel Energy, Inc. is generating enough operating income to cover its interest expenses comfortably. However, investors and creditors may view a decreasing trend in the interest coverage ratio as a potential concern as it indicates a slight weakening in the company's ability to cover its interest payments.
Overall, while Xcel Energy, Inc.'s interest coverage has decreased over the years, it is important to continue monitoring this ratio to ensure the company's long-term financial health and stability.
Peer comparison
Dec 31, 2023