EXCO Resources (EXCO Resources) Interest Coverage : 5.82 (As of Dec. 2018)

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What is EXCO Resources Interest Coverage?

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. EXCO Resources's Operating Income for the three months ended in Dec. 2018 was $46.2 Mil. EXCO Resources's Interest Expense for the three months ended in Dec. 2018 was $-7.9 Mil. EXCO Resources's interest coverage for the quarter that ended in Dec. 2018 was 5.82. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for EXCO Resources's Interest Coverage or its related term are showing as below:

EXCE's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 6.59
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

EXCO Resources Interest Coverage Historical Data

The historical data trend for EXCO Resources'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.

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EXCO Resources Interest Coverage Chart

EXCO Resources Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Interest Coverage

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1.35

3.99

EXCO Resources Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
Interest Coverage	Get a 7-Day Free Trial															-	2.97	3.89	3.49	5.82

Competitive Comparison of EXCO Resources's Interest Coverage

For the Oil & Gas E&P subindustry, EXCO Resources'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.

EXCO Resources's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, EXCO Resources's Interest Coverage distribution charts can be found below:

* The bar in red indicates where EXCO Resources's Interest Coverage falls into.

EXCO Resources Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

EXCO Resources's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, EXCO Resources's Interest Expense was $-33.9 Mil. Its Operating Income was $135.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2018 )	/	Interest Expense (A: Dec. 2018 )
	=	-1	*	135.244	/	-33.917
	=	3.99

EXCO Resources's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the three months ended in Dec. 2018, EXCO Resources's Interest Expense was $-7.9 Mil. Its Operating Income was $46.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2018 )	/	Interest Expense (Q: Dec. 2018 )
	=	-1	*	46.224	/	-7.936
	=	5.82

The higher the ratio, the stronger the company's Financial Strength is.

EXCO Resources (OTCPK:EXCE) Interest Coverage Explanation

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 .

EXCO Resources Interest Coverage Related Terms

Thank you for viewing the detailed overview of EXCO Resources's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

EXCO Resources (EXCO Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » EXCO Resources Inc (OTCPK:EXCE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

12377 Merit Drive, Suite 1700, Dallas, TX, USA, 75251

Website

http://www.excoresources.com

EXCO Resources Inc is an oil and gas exploration and production company. Its operations include the exploration, acquisition, development, and production of oil and gas reserves. These activities take place in the company's onshore oilfields within the United States, and focus on shale resource plays. Its fields are located in key oil and gas areas, including Texas, Louisiana, and the Appalachian region. The Louisiana and Texas operations are the most productive fields. The majority of the company's revenue is generated from natural gas, with a smaller portion coming from oil.

Executives

Wl Ross & Co Llc	10 percent owner	2001 ROSS AVENUE, SUITE 3400, DALLAS TX 75201
Wlr Master Co-investment Gp Llc	10 percent owner	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Wlr Recovery Associates Iv Llc	10 percent owner	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Invesco Wlr Iv Associates Llc	10 percent owner	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Wlr Iv Parallel Esc Lp	10 percent owner	1166 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036
Invesco Private Capital, Inc.	10 percent owner	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
810679 Ontario Ltd	10 percent owner	95 WELLINGTON STREET WEST SUITE 800, TORONTO ONTARIO CANADA A6 00000
Second 1109 Holdco Ltd.	10 percent owner	95 WELLINGTON ST W STE 800, TORONTO A6 M5J 2N7
Ffhl Group Ltd	10 percent owner	FAIRFAX FINANCIAL HOLDINGS, 4405 CINNERCE CIYRT WEST, TORONTO ONTARIO A6 00000
Sixty Two Investment Co Ltd	10 percent owner	1600 CATHEDRAL PLACE, 925 W GEORGIA ST, VANCOUVER BC CANADA A1 V6C3L3
Fairfax Financial Holdings Ltd/ Can	10 percent owner	FAIRFAX FINANCIAL HOLDINGS LTD, 95 WELLINGTON ST WEST STE 800, TORONTO A6 M5J 2N7
Watsa V Prem Et Al	10 percent owner	95 WELLINGTON STREET WEST, SUITE 800, TORONTO A6 M5J 2N7
Wilder John C Jr	director	300 CRESCENT COURT, SUITE 1860, DALLAS TX 75201
Oaktree Value Opportunities Fund Holdings, L.p.	director, 10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Ocm Principal Opportunities Fund Iii Gp, L.p.	director, 10 percent owner	333 S. GRAND AVE., 28TH FLOOR, LOS ANGELES CA 90071