American Electric Power Company, Inc. (AEP) Interest Coverage Ratio: 2.61x
The interest coverage ratio for American Electric Power Company, Inc. (AEP) is 2.61x as of Wednesday, June 17, 2026.
AEP Interest Coverage Ratio Metrics
INTEREST COVERAGE RATIO
2.61x
AEP Competitors' Interest Coverage Ratio
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| American Electric Power Company, Inc. (AEP) | $70.30B | 2.61x | N/A | N/A | N/A |
| Dominion Energy, Inc. (D)vs › | $60.18B | 2.18x | 1.95x | 1.85x | 1.74x |
| Sempra (SRE)vs › | $59.53B | 2.12x | 2.15x | 2.51x | 2.53x |
| Entergy Corporation (ETR)vs › | $51.46B | 2.28x | 2.29x | 2.31x | 2.29x |
| Xcel Energy Inc. (XEL)vs › | $49.24B | 2.14x | 2.08x | 2.31x | 2.43x |
| Exelon Corporation (EXC)vs › | $47.34B | 2.42x | 2.34x | 2.33x | 2.19x |
| Duke Energy Corporation (DUK)vs › | $97.37B | 2.36x | 2.35x | 2.38x | 2.35x |
| Consolidated Edison, Inc. (ED)vs › | $39.94B | 2.38x | 2.34x | 2.42x | 2.56x |
| Public Service Enterprise Group Incorporated (PEG)vs › | $39.57B | 3.10x | 2.95x | 3.43x | 3.63x |
| WEC Energy Group, Inc. (WEC)vs › | $37.09B | 2.65x | 2.65x | 2.91x | 3.13x |
Financial Health Indicators
Interest Coverage
2.6x
Debt/Equity
1.61
Current Ratio
0.45
Formula: Interest Coverage = EBIT / Interest Expense
Reference ranges:
- < 1.5x: EBIT is less than 1.5 times interest expense
- 1.5x - 3x: EBIT is between 1.5 and 3 times interest expense
- 3x - 5x: EBIT is between 3 and 5 times interest expense
- > 5x: EBIT is more than 5 times interest expense
Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.
American Electric Power Company, Inc. Interest Coverage Ratio Formula & Definition
Interest Coverage = EBIT / Interest Expense
The interest coverage ratio measures operating earnings relative to interest expense.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
American Electric Power Company, Inc. Interest Coverage Ratio FAQ
- What is the interest coverage ratio for American Electric Power Company, Inc. (AEP)?
- The interest coverage ratio for AEP stock is 2.61x.
About American Electric Power Company, Inc.
American Electric Power Company, Inc. (AEP) operates as a prominent electric utility holding company, with its core business encompassing the generation, transmission, and delivery of electricity. Serving both retail and wholesale clients across the United States, AEP organizes its extensive operations into several key segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. The firm produces its electrical power from a diverse portfolio of energy sources, including coal, lignite, natural gas, nuclear, hydroelectric, solar, and wind power, alongside other emerging technologies. Beyond direct consumer sales, AEP also functions as a major wholesale electricity supplier, providing power to other utility companies, rural electric cooperatives, municipalities, and various other participants within the energy market. Incorporated in 1906, the company's corporate headquarters are situated in Columbus, Ohio.
- Sector
- Utilities
- Industry
- Regulated Electric
- CEO
- William J. Fehrman