PPLPPLC -0.28%85 Interest Coverage is 3.33 as of Mar. 2026, which is 30% above its 10-year median of 2.57. GuruFocus rates PPLC with a GF Score™ of 85/100. The stock has 10 warning signs investors should review. Among 449 Utilities - Regulated companies, PPL ranks worse than 64.14% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. PPL's
Operating Income
for the
three
months ended in Mar. 2026 was $745.00 Mil. PPL's Interest Expense for the
three
months ended in Mar. 2026 was $-224.00 Mil.
PPL's interest coverage for the quarter that ended in Mar. 2026 was 3.33.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for PPL's Interest Coverage or its related term are showing as below:
PPLC'
s Interest Coverage Range Over the Past 10 Years
Min: 1.55 Med: 2.57 Max: 3.31
Current: 2.61
PPLC's Interest Coverage is ranked worse than 64.14% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs PPLC: 2.61
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
PPL Interest Coverage Related Terms
PPL Interest Coverage Historical Data
* Premium members only.
The historical data trend for PPL's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Utilities - Regulated Electric subindustry, PPL's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PPL Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, PPL's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PPL's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PPL (PPLC) has a Interest Coverage of 3.33 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PPL and its competitors. This is 30% above median its historical median of 2.57. Over the past decade, PPL's Interest Coverage has ranged from 1.55 to 3.31. According to the industry distribution chart, PPL ranks #288 out of 449 companies in the Utilities - Regulated industry, placing it in the top 64.1%.
Is PPL's Interest Coverage too high?
PPL's current Interest Coverage of 3.33 is 30% above median its 10-year median of 2.57. Over the past 10 years, this metric has ranged from a low of 1.55 to a high of 3.31. The Utilities - Regulated industry median Interest Coverage is 3.78. PPL's value of 3.33 is 11.9% below this industry median. Based on the distribution chart, PPL ranks #288 out of 449 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, PPL has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does PPL's Interest Coverage compare to FE and EIX?
According to the Utilities - Regulated industry distribution chart, PPL ranks #288 out of 449 companies for Interest Coverage. This places PPL in the lower half of its industry. The industry median Interest Coverage is 3.78. PPL's value of 3.33 is 11.9% below this benchmark. Historically, PPL's own Interest Coverage has ranged from 1.55 to 3.31 over the past decade. While the company's 10-year median is 2.57 vs. the industry median of 3.78, PPL has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PPL's current Interest Coverage of 3.33 is 11.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PPL and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PPL's current Interest Coverage is 3.33, which is 30% above median its own 10-year median of 2.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PPL stock overvalued right now?
PPL (PPLC) has a current Interest Coverage of 3.33. The current Interest Coverage is 3.33, which is 30% above median its 10-year median of 2.57 and 11.9% below the Utilities - Regulated industry median of 3.78. PPL's overall GF Score™ is 85/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For PPL (PPLC), the current Interest Coverage is 3.33 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
PPL is a holding company of regulated utilities in Pennsylvania, Kentucky, and Rhode Island. The Pennsylvania regulated delivery and transmission segment distributes electricity to customers in central and eastern Pennsylvania. In Kentucky, LG&E and KU are involved in regulated electricity generation, transmission, and distribution. LG&E also provides regulated natural gas distribution. Rhode Island Energy operates electric and gas utilities in the state.
85GF Score
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