Xcel Energy Inc (XEL)
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 | 2,680,000 | 2,623,000 | 2,595,000 | 2,628,000 | 2,554,000 | 2,431,000 | 2,357,000 | 2,341,000 | 2,342,000 | 2,363,000 | 2,367,000 | 2,364,000 | 2,307,000 | 2,331,000 | 2,262,000 | 2,231,000 | 2,272,000 | 2,163,000 | 2,106,000 | 2,149,000 |
| Interest expense (ttm) | US$ in thousands | 1,055,000 | 1,038,000 | 1,013,000 | 992,000 | 953,000 | 919,000 | 886,000 | 851,000 | 842,000 | 840,000 | 850,000 | 846,000 | 840,000 | 823,000 | 801,000 | 782,000 | 772,000 | 754,000 | 732,000 | 718,000 |
| Interest coverage | 2.54 | 2.53 | 2.56 | 2.65 | 2.68 | 2.65 | 2.66 | 2.75 | 2.78 | 2.81 | 2.78 | 2.79 | 2.75 | 2.83 | 2.82 | 2.85 | 2.94 | 2.87 | 2.88 | 2.99 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,680,000K ÷ $1,055,000K
= 2.54
The interest coverage ratio for Xcel Energy, Inc. over the past eight quarters has remained relatively stable, ranging from 2.40 to 2.68. This indicates that the company's operating income has consistently been more than double its interest expenses, demonstrating a strong ability to meet its interest payment obligations. The slight fluctuations in the ratio suggest that the company has been able to effectively manage its debt servicing requirements, maintaining a healthy financial position. Overall, the consistent and relatively high interest coverage ratio reflects Xcel Energy's solid financial health and ability to comfortably handle its debt obligations.
Peer comparison
Dec 31, 2023