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Alliance Holdings GP LP (Alliance Holdings GP LP) Interest Coverage : 14.70 (As of Mar. 2018)


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What is Alliance Holdings GP LP 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. Alliance Holdings GP LP's Operating Income for the three months ended in Mar. 2018 was $160 Mil. Alliance Holdings GP LP's Interest Expense for the three months ended in Mar. 2018 was $-11 Mil. Alliance Holdings GP LP's interest coverage for the quarter that ended in Mar. 2018 was 14.70. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Alliance Holdings GP LP's Interest Coverage or its related term are showing as below:


AHGP's Interest Coverage is not ranked *
in the Steel industry.
Industry Median: 6.08
* 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.


Alliance Holdings GP LP Interest Coverage Historical Data

The historical data trend for Alliance Holdings GP LP'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.

* Premium members only.

Alliance Holdings GP LP Interest Coverage Chart

Alliance Holdings GP LP Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.33 16.07 14.75 11.83 8.29

Alliance Holdings GP LP Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.34 7.37 5.97 7.35 14.70

Competitive Comparison of Alliance Holdings GP LP's Interest Coverage

For the Coking Coal subindustry, Alliance Holdings GP LP'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.


Alliance Holdings GP LP's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Alliance Holdings GP LP's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Alliance Holdings GP LP's Interest Coverage falls into.



Alliance Holdings GP LP 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.

Alliance Holdings GP LP's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Alliance Holdings GP LP's Interest Expense was $-39 Mil. Its Operating Income was $327 Mil. And its Long-Term Debt & Capital Lease Obligation was $473 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2017 )/Interest Expense (A: Dec. 2017 )
=-1*326.662/-39.385
=8.29

Alliance Holdings GP LP's Interest Coverage for the quarter that ended in Mar. 2018 is calculated as

Here, for the three months ended in Mar. 2018, Alliance Holdings GP LP's Interest Expense was $-11 Mil. Its Operating Income was $160 Mil. And its Long-Term Debt & Capital Lease Obligation was $437 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2018 )/Interest Expense (Q: Mar. 2018 )
=-1*159.646/-10.858
=14.70

* 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.

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


Alliance Holdings GP LP  (NAS:AHGP) 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 .


Alliance Holdings GP LP Interest Coverage Related Terms

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


Alliance Holdings GP LP (Alliance Holdings GP LP) Business Description

Traded in Other Exchanges
N/A
Address
Alliance Holdings GP LP is a diversified producer and marketer of coal to U.S. utilities and industrial users that operate approximately ten underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia. The company operates in five reportable segments which are the Illinois Basin, Central Appalachia, Northern Appalachia, White Oak and Other and Corporate.
Executives
Robert J Druten director 6503 SENECA ROAD, MISSION HILLS KS 66208
Craft Joseph W Iii director, 10 percent owner, officer: President and Chief Executive PO BOX 22027, TULSA OK 74121-2027
Cary P Marshall officer: Vice President and Treasurer PO BOX 22027, C/O ALLIANCE RESOURCE PARTNERS LP, TULSA OK 74121
Wilson M Torrence director 1717 SOUTH BOULDER, SUITE 400, TULSA OK 74119
Michael J Hall director 7438 EAST 68TH PLACE, TULSA OK 74133
Kathleen S. Craft 10 percent owner 2502 E. 45TH ST., TULSA OK 74105
Charles R Wesley other: Member of 13d group (over 10%) PO BOX 22027, C/O ALLIANCE RESOURCE PARTNERS LP, TULSA OK 74121
Thomas M Wynne other: Member of 13d group (over 10%) PO BOX 22027, C/O ALLIANCE RESOURCE PARTNERS LP, TULSA OK 74121
R Eberley Davis officer: SVP-Law&Admin,General Counsel 1717 SOUTH BOULDER, SUITE 400, TULSA OK 74119
Brian L Cantrell officer: Senior VP and CFO P O BOX 22027, TULSA OK 74121
Dave A Gilbert other: Member of 13d group (over 10%) PO BOX 22027, C/O ALLIANCE RESOURCE PARTNERS LP, TULSA OK 74121
Dale G Wilkerson other: Member of 13d group (over 10%) PO BOX 22027, C/O ALLIANCE RESOURCE PARTNERS LP, TULSA OK 74121
A Wellford Tabor other: Member of 13d group (over 10%) 2820 SELWYN AVE. SUITE 550 CHARLOTTE NC 28209
Thomas L Pearson officer: Senior VP-Law & Adminstration PO BOX 22027, C/O ALLIANCE RESOURCE PARTNERS LP, TULSA OK 74121
Gary J Rathburn other: Member of 13d group (over 10%) PO BOX 22027, C/O ALLIANCE RESOURCE PARTNERS LP, TULSA OK 74121