Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.
Is the interest coverage ratio high or low?
The interest coverage ratio of 2.61x is in line with its 5-year average of 2.50x, around the middle of its 5-year range (1.72x–4.42x).
9.67% below its 12-month average of 2.89x.
Reported quarterly interest coverage; no daily interpolation. Q2 FY2026 (2026-06-30): 4.42x.
INTEREST COVERAGE RATIO
2.61x
INTEREST COVERAGE RATIO AVG TTM
2.89x
INTEREST COVERAGE RATIO AVG 3Y
2.48x
INTEREST COVERAGE RATIO AVG 5Y
2.50x
INTEREST COVERAGE RATIO AVG 10Y
2.67x
INTEREST COVERAGE RATIO AVG 15Y
2.97x
INTEREST COVERAGE RATIO AVG 20Y
2.98x
CURRENT VS TTM AVG
-9.67%
CURRENT VS 3Y AVG
+5.29%
CURRENT VS 5Y AVG
+4.27%
CURRENT VS 10Y AVG
-2.38%
CURRENT VS 15Y AVG
-12.23%
CURRENT VS 20Y AVG
-12.43%
SECTOR MEDIAN · UTILITIES
2.39x
median of 39 covered companies
CURRENT VS SECTOR MEDIAN
+9.21%
vs the sector median at left
American Electric Power Company, Inc.
Market Cap
$65.66B
Interest Coverage Ratio
2.61x
TTM Avg
2.89x
3Y Avg
2.48x
5Y Avg
2.50x
Market Cap
$56.18B
Interest Coverage Ratio
2.18x
TTM Avg
1.95x
3Y Avg
1.85x
5Y Avg
1.74x
Market Cap
$48.03B
Interest Coverage Ratio
2.28x
TTM Avg
2.29x
3Y Avg
2.31x
5Y Avg
2.29x
Market Cap
$47.72B
Interest Coverage Ratio
1.13x
TTM Avg
3.41x
3Y Avg
3.78x
5Y Avg
4.03x
Market Cap
$45.28B
Interest Coverage Ratio
2.14x
TTM Avg
2.08x
3Y Avg
2.31x
5Y Avg
2.43x
Market Cap
$43.47B
Interest Coverage Ratio
2.42x
TTM Avg
2.34x
3Y Avg
2.33x
5Y Avg
2.19x
Market Cap
$91.81B
Interest Coverage Ratio
2.36x
TTM Avg
2.35x
3Y Avg
2.38x
5Y Avg
2.35x
Market Cap
$38.78B
Interest Coverage Ratio
2.38x
TTM Avg
2.34x
3Y Avg
2.42x
5Y Avg
2.56x
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| American Electric Power Company, Inc. (AEP) | $65.66B | 2.61x | 2.89x | 2.48x | 2.50x |
| Dominion Energy, Inc. (D)vs › | $56.18B | 2.18x | 1.95x | 1.85x | 1.74x |
| Sempra (SRE)vs › | $53.08B | 2.12x | 2.15x | 2.51x | 2.53x |
| Entergy Corporation (ETR)vs › | $48.03B | 2.28x | 2.29x | 2.31x | 2.29x |
| Vistra Corp. (VST)vs › | $47.72B | 1.13x | 3.41x | 3.78x | 4.03x |
| Xcel Energy Inc. (XEL)vs › | $45.28B | 2.14x | 2.08x | 2.31x | 2.43x |
| Exelon Corporation (EXC)vs › | $43.47B | 2.42x | 2.34x | 2.33x | 2.19x |
| Duke Energy Corporation (DUK)vs › | $91.81B | 2.36x | 2.35x | 2.38x | 2.35x |
| Consolidated Edison, Inc. (ED)vs › | $38.78B | 2.38x | 2.34x | 2.42x | 2.56x |
| Constellation Energy Corporation (CEG)vs › | $93.33B | 6.04x | 7.32x | 5.09x | 4.21x |
Interest Coverage
2.6x
Debt/Equity
1.66
Current Ratio
0.50
Formula: Interest Coverage = EBIT / Interest Expense
Reference ranges:
Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.
Interest Coverage = EBIT / Interest Expense
The interest coverage ratio measures operating earnings relative to interest expense.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
| DATE | INTEREST COVERAGE RATIO |
|---|---|
| 2026-06-30 | 4.42x |
| 2026-03-31 | 2.46x |
| 2025-12-31 | 1.72x |
| 2025-09-30 | 2.99x |
| 2025-06-30 | 2.85x |
| 2025-03-31 | 2.94x |
| 2024-12-31 | 2.37x |
| 2024-09-30 | 2.90x |
| 2024-06-30 | 1.88x |
| 2024-03-31 | 2.84x |
| 2023-12-31 | 1.73x |
| 2023-09-30 | 2.89x |
| 2023-06-30 | 2.17x |
| 2023-03-31 | 2.33x |
| 2022-12-31 | 1.90x |
| 2022-09-30 | 2.75x |
| 2022-06-30 | 2.54x |
| 2022-03-31 | 2.67x |
| 2021-12-31 | 2.25x |
| 2021-09-30 | 3.23x |
| 2021-06-30 | 2.64x |
| 2021-03-31 | 2.80x |
| 2020-12-31 | 2.00x |
| 2020-09-30 | 3.21x |
| 2020-06-30 | 2.44x |
| 2020-03-31 | 2.62x |
| 2019-12-31 | 1.56x |
| 2019-09-30 | 3.40x |
| 2019-06-30 | 2.19x |
| 2019-03-31 | 3.07x |
| 2018-12-31 | 2.45x |
| 2018-09-30 | 2.53x |
| 2018-06-30 | 3.01x |
| 2018-03-31 | 3.09x |
| 2017-12-31 | 3.59x |
| 2017-09-30 | 4.29x |
| 2017-06-30 | 3.24x |
| 2017-03-31 | 3.90x |
| 2016-12-31 | 2.59x |
| 2016-09-30 | 5.00x |
| 2016-06-30 | 3.85x |
| 2016-03-31 | 4.11x |
| 2015-12-31 | 2.17x |
| 2015-09-30 | 4.36x |
| 2015-06-30 | 3.67x |
| 2015-03-31 | 5.04x |
| 2014-12-31 | 2.24x |
| 2014-09-30 | 4.17x |
| 2014-06-30 | 3.47x |
| 2014-03-31 | 4.73x |
| 2013-12-31 | 3.07x |
| 2013-09-30 | 3.89x |
| 2013-06-30 | 2.40x |
| 2013-03-31 | 3.25x |
| 2012-12-31 | 0.86x |
| 2012-09-30 | 3.91x |
| 2012-06-30 | 3.15x |
| 2012-03-31 | 3.29x |
| 2011-12-31 | 1.63x |
| 2011-09-30 | 3.68x |
| 2011-06-30 | 3.00x |
| 2011-03-31 | 3.44x |
| 2010-12-31 | 1.95x |
| 2010-09-30 | 4.08x |
| 2010-06-30 | 1.58x |
| 2010-03-31 | 3.03x |
| 2009-12-31 | 1.95x |
| 2009-09-30 | 3.46x |
| 2009-06-30 | 2.84x |
| 2009-03-31 | 3.15x |
| 2008-09-30 | 3.41x |
| 2008-06-30 | 2.50x |
| 2008-03-31 | 4.76x |
| 2006-09-30 | 3074.71x |
| 2006-06-30 | 2107.95x |
| 2005-09-30 | 4296.55x |
| 2005-06-30 | 2916.67x |
| 2005-03-31 | 3.78x |
