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.