Saudi Electricity Co (SAU:5110) Interest Coverage : 1.35 (As of Mar. 2024)

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What is Saudi Electricity Co 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. Saudi Electricity Co's Operating Income for the three months ended in Mar. 2024 was ﷼1,749 Mil. Saudi Electricity Co's Interest Expense for the three months ended in Mar. 2024 was ﷼-1,292 Mil. Saudi Electricity Co's interest coverage for the quarter that ended in Mar. 2024 was 1.35. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Saudi Electricity Co interest coverage is 3.35, which is low.

The historical rank and industry rank for Saudi Electricity Co's Interest Coverage or its related term are showing as below:

SAU:5110' s Interest Coverage Range Over the Past 10 Years
Min: 1.03 Med: 3.24 Max: 7.23
Current: 3.35

SAU:5110's Interest Coverage is ranked worse than
55.73% of 445 companies
in the Utilities - Regulated industry
Industry Median: 3.84 vs SAU:5110: 3.35

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

Saudi Electricity Co Interest Coverage Historical Data

The historical data trend for Saudi Electricity Co'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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Saudi Electricity Co Interest Coverage Chart

Saudi Electricity Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.03

1.28

7.23

6.12

3.35

Saudi Electricity Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															1.12	3.35	5.41	-	1.35

Competitive Comparison of Saudi Electricity Co's Interest Coverage

For the Utilities - Regulated Electric subindustry, Saudi Electricity Co'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.

Saudi Electricity Co's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Saudi Electricity Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Saudi Electricity Co's Interest Coverage falls into.

Saudi Electricity Co 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.

Saudi Electricity Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Saudi Electricity Co's Interest Expense was ﷼-3,961 Mil. Its Operating Income was ﷼13,275 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼85,292 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	13274.883	/	-3961.294
	=	3.35

Saudi Electricity Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Saudi Electricity Co's Interest Expense was ﷼-1,292 Mil. Its Operating Income was ﷼1,749 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼107,121 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	1748.717	/	-1291.975
	=	1.35

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

Saudi Electricity Co (SAU:5110) 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 .

Saudi Electricity Co Interest Coverage Related Terms

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

Saudi Electricity Co (SAU:5110) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Saudi Electricity Co (SAU:5110) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Crossing of Al-Olaya Street, Rihana Bint Zaid Street, P. O. Box 22955, Al-Arid district, Riyadh, SAU, 11416

Website

https://www.se.com.sa

Saudi Electricity Co is principally engaged in the generation, transmission, and distribution of electrical power and customer service activities. The company provides its services to governmental, industrial, agricultural, commercial, and residential sectors. Saudi Electricity operates through three segments namely Generation segment which is involved in the generation and provision of electric power; Transmission segment which is engaged in the transmission of electrical power from generation stations using transmission network, to the distribution network and operation and maintenance of electricity transmission system; and Distribution and Subscriber services segment which includes receipt of electric power from the transmission network and distribution to the company's customers.

Saudi Electricity Co (SAU:5110) Headlines

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