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 2.80x is 14% above its 5-year average of 2.46x, around the middle of its 5-year range (1.95x–4.24x).
9.51% above its 12-month average of 2.56x.
Reported quarterly interest coverage; no daily interpolation. Q2 FY2026 (2026-06-30): 2.17x.
INTEREST COVERAGE RATIO
2.80x
INTEREST COVERAGE RATIO AVG TTM
2.56x
INTEREST COVERAGE RATIO AVG 3Y
2.45x
INTEREST COVERAGE RATIO AVG 5Y
2.46x
INTEREST COVERAGE RATIO AVG 10Y
2.93x
INTEREST COVERAGE RATIO AVG 15Y
3.29x
INTEREST COVERAGE RATIO AVG 20Y
3.37x
CURRENT VS TTM AVG
+9.51%
CURRENT VS 3Y AVG
+14.17%
CURRENT VS 5Y AVG
+14.03%
CURRENT VS 10Y AVG
-4.54%
CURRENT VS 15Y AVG
-14.90%
CURRENT VS 20Y AVG
-16.90%
SECTOR MEDIAN · UTILITIES
2.39x
median of 41 covered companies
CURRENT VS SECTOR MEDIAN
+17.15%
vs the sector median at left
Essential Utilities, Inc.
Market Cap
$11.17B
Interest Coverage Ratio
2.80x
TTM Avg
2.56x
3Y Avg
2.45x
5Y Avg
2.46x
Market Cap
$11.62B
Interest Coverage Ratio
2.65x
TTM Avg
2.67x
3Y Avg
2.67x
5Y Avg
2.93x
Market Cap
$10.63B
Interest Coverage Ratio
1.39x
TTM Avg
1.36x
3Y Avg
1.67x
5Y Avg
2.06x
Market Cap
$8.67B
Interest Coverage Ratio
0.35x
TTM Avg
0.45x
3Y Avg
0.68x
5Y Avg
0.99x
Market Cap
$7.98B
Interest Coverage Ratio
2.69x
TTM Avg
2.32x
3Y Avg
3.23x
5Y Avg
4.09x
Market Cap
$14.56B
Interest Coverage Ratio
0.05x
TTM Avg
0.37x
3Y Avg
0.32x
5Y Avg
0.32x
Market Cap
$6.03B
Interest Coverage Ratio
0.45x
TTM Avg
0.55x
3Y Avg
2.05x
5Y Avg
1.64x
Market Cap
$16.61B
Interest Coverage Ratio
2.00x
TTM Avg
1.98x
3Y Avg
2.30x
5Y Avg
2.43x
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Essential Utilities, Inc. (WTRG) | $11.17B | 2.80x | 2.56x | 2.45x | 2.46x |
| Pinnacle West Capital Corporation (PNW)vs › | $11.62B | 2.65x | 2.67x | 2.67x | 2.93x |
| The AES Corporation (AES)vs › | $10.63B | 1.39x | 1.36x | 1.67x | 2.06x |
| Brookfield Renewable Partners L.P. (BEP)vs › | $8.67B | 0.35x | 0.45x | 0.68x | 0.99x |
| UGI Corporation (UGI)vs › | $7.98B | 2.69x | 2.32x | 3.23x | 4.09x |
| Talen Energy Corporation (TLN)vs › | $14.56B | 0.05x | 0.37x | 0.32x | 0.32x |
| Oklo Inc. (OKLO)vs › | $6.24B | N/A | N/A | N/A | N/A |
| Clearway Energy, Inc. (CWEN)vs › | $6.03B | 0.45x | 0.55x | 2.05x | 1.64x |
| Alliant Energy Corporation (LNT)vs › | $16.61B | 2.00x | 1.98x | 2.30x | 2.43x |
| Black Hills Corporation (BKH)vs › | $5.40B | 2.60x | 2.59x | 2.65x | 2.71x |
Interest Coverage
2.8x
Debt/Equity
1.21
Current Ratio
0.78
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 | 2.17x |
| 2026-03-31 | 3.56x |
| 2025-12-31 | 2.67x |
| 2025-09-30 | 2.06x |
| 2025-06-30 | 2.32x |
| 2025-03-31 | 4.13x |
| 2024-12-31 | 2.86x |
| 2024-09-30 | 2.02x |
| 2024-06-30 | 1.99x |
| 2024-03-31 | 3.15x |
| 2023-12-31 | 2.39x |
| 2023-09-30 | 2.00x |
| 2023-06-30 | 2.24x |
| 2023-03-31 | 3.10x |
| 2022-12-31 | 2.47x |
| 2022-09-30 | 2.08x |
| 2022-06-30 | 2.49x |
| 2022-03-31 | 4.24x |
| 2021-12-31 | 2.64x |
| 2021-09-30 | 1.95x |
| 2021-06-30 | 2.49x |
| 2021-03-31 | 4.58x |
| 2020-12-31 | 2.57x |
| 2020-09-30 | 2.11x |
| 2020-06-30 | 2.38x |
| 2020-03-31 | 2.09x |
| 2019-12-31 | 2.57x |
| 2019-09-30 | 3.26x |
| 2019-06-30 | 2.55x |
| 2019-03-31 | 2.42x |
| 2018-12-31 | 2.38x |
| 2018-09-30 | 4.11x |
| 2018-06-30 | 3.66x |
| 2018-03-31 | 2.95x |
| 2017-12-31 | 3.32x |
| 2017-09-30 | 4.41x |
| 2017-06-30 | 4.01x |
| 2017-03-31 | 3.34x |
| 2016-12-31 | 3.52x |
| 2016-09-30 | 4.85x |
| 2016-06-30 | 4.15x |
| 2016-03-31 | 3.64x |
| 2015-12-31 | 3.78x |
| 2015-09-30 | 4.94x |
| 2015-06-30 | 4.25x |
| 2015-03-31 | 3.81x |
| 2014-12-31 | 3.82x |
| 2014-09-30 | 5.01x |
| 2014-06-30 | 4.19x |
| 2014-03-31 | 3.46x |
| 2013-12-31 | 3.57x |
| 2013-09-30 | 4.45x |
| 2013-06-30 | 4.15x |
| 2013-03-31 | 3.47x |
| 2012-12-31 | 3.72x |
| 2012-09-30 | 5.13x |
| 2012-06-30 | 4.45x |
| 2012-03-31 | 3.21x |
| 2011-12-31 | 3.33x |
| 2011-09-30 | 4.43x |
| 2011-06-30 | 3.61x |
| 2011-03-31 | 3.05x |
| 2010-12-31 | 3.36x |
| 2010-09-30 | 4.35x |
| 2010-06-30 | 3.57x |
| 2010-03-31 | 2.75x |
| 2009-12-31 | 3.37x |
| 2009-09-30 | 4.14x |
| 2009-06-30 | 3.50x |
| 2009-03-31 | 2.81x |
| 2008-12-31 | 3.69x |
| 2008-09-30 | 4.38x |
| 2008-06-30 | 3.45x |
| 2008-03-31 | 2.49x |
| 2007-12-31 | 5.06x |
| 2007-09-30 | 4.10x |
| 2007-06-30 | 3.33x |
| 2007-03-31 | 2.78x |
| 2006-12-31 | 3.75x |
| 2006-09-30 | 4.29x |
| 2006-06-30 | 4.00x |
| 2006-03-31 | 3.13x |
| 2005-12-31 | 3.42x |
| 2005-09-30 | 4.66x |
| 2005-06-30 | 3.87x |
| 2005-03-31 | 3.73x |
| 2004-12-31 | 4.04x |
| 2004-09-30 | 4.78x |
| 2004-06-30 | 3.80x |
| 2004-03-31 | 3.09x |
| 2003-12-31 | 3.38x |
| 2003-09-30 | 3.95x |
| 2003-06-30 | 3.53x |
| 2003-03-31 | 3.19x |
| 2002-12-31 | 4.06x |
| 2002-09-30 | 4.65x |
