Xcel Energy Inc (XEL)
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 | 2,599,000 | 2,790,000 | 2,748,000 | 2,716,000 | 2,610,000 | 2,488,000 | 2,465,000 | 2,520,000 | 2,460,000 | 2,361,000 | 2,255,000 | 2,216,000 | 2,205,000 | 2,194,000 | 2,180,000 | 2,161,000 | 2,107,000 | 2,102,000 | 2,044,000 | 2,029,000 |
| Interest expense (ttm) | US$ in thousands | 1,182,000 | 1,150,000 | 1,092,000 | 1,045,000 | 1,011,000 | 977,000 | 967,000 | 951,000 | 917,000 | 892,000 | 859,000 | 818,000 | 802,000 | 799,000 | 805,000 | 802,000 | 791,000 | 783,000 | 759,000 | 752,000 |
| Interest coverage | 2.20 | 2.43 | 2.52 | 2.60 | 2.58 | 2.55 | 2.55 | 2.65 | 2.68 | 2.65 | 2.63 | 2.71 | 2.75 | 2.75 | 2.71 | 2.69 | 2.66 | 2.68 | 2.69 | 2.70 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,599,000K ÷ $1,182,000K
= 2.20
Xcel Energy Inc's interest coverage ratio has shown a gradual decline from 2.70 as of March 31, 2020, to 2.20 as of December 31, 2024. This indicates the company's ability to cover its interest expenses with its operating income has slightly weakened over the period.
While the ratio consistently stayed above 2, which generally signifies that the company can comfortably meet its interest obligations, the downtrend suggests a potential risk in the long run if the trend continues. The company may need to focus on improving its operating performance or managing its debt levels to ensure sustainable interest coverage in the future.
Peer comparison
Dec 31, 2024