Black Hills (Black Hills) Interest Coverage

: 2.83 (As of Dec. 2023)

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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. Black Hills's Operating Income for the three months ended in Dec. 2023 was $137 Mil. Black Hills's Interest Expense for the three months ended in Dec. 2023 was $-48 Mil. Black Hills's interest coverage for the quarter that ended in Dec. 2023 was 2.83. 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. Black Hills Corp interest coverage is 2.63, which is low.

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

BKH' s Interest Coverage Range Over the Past 10 Years
Min: 2.47 Med: 2.86 Max: 3.72
Current: 2.63

BKH's Interest Coverage is ranked worse than
65.38% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs BKH: 2.63

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

Black Hills Interest Coverage Historical Data

The historical data trend for Black Hills'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.

Black Hills Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

2.92

2.96

2.66

2.80

2.63

Black Hills Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.94	3.97	1.47	2.20	2.83

Competitive Comparison

For the Utilities - Regulated Gas subindustry, Black Hills'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.

Black Hills Interest Coverage Distribution

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

* The bar in red indicates where Black Hills's Interest Coverage falls into.

Black Hills 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.

Black Hills'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, Black Hills's Interest Expense was $-180 Mil. Its Operating Income was $473 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,801 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	472.7	/	-180
	=	2.63

Black Hills's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Black Hills's Interest Expense was $-48 Mil. Its Operating Income was $137 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,801 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	136.53	/	-48.191
	=	2.83

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

Black Hills (NYSE:BKH) 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 .

Black Hills Interest Coverage Related Terms

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

Black Hills (Black Hills) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Black Hills Corp (NYSE:BKH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BHI:Germany BHI:Germany

Address

7001 Mount Rushmore Road, Rapid City, SD, USA, 57702

Website

https://www.blackhillscorp.com

Black Hills Corp is a U.S.-based energy company that operates through its regulated Electric Utilities, regulated Gas Utilities, Power Generation and Mining segments. These segments operate in states in the Midwest and mountain regions in the U.S. The company's customers include residential, commercial, industrial, and municipal consumers. These customers are residential. Black Hills derives the majority of its revenue from its utility business group, specifically from electric utilities.

Executives

Richard Kinzley	officer: Sr VP & CFO	PO BOX 1400, RAPID CITY SD 57709
Rebecca B Roberts	director	1000 LOUISIANA, SUITE 5800, HOUSTON TX 77002
Stuart A Wevik	officer: Sr VP - Utility Operations	PO BOX 1400, RAPID CITY SD 57709
Kathleen S Mcallister	director	DEEPWATER HOUSE, KINGSWELLS CAUSEWAY, PRIME FOUR BUSINESS PARK, ABERDEEN, SCOTLAND X0 AB15 8PU
Barry M Granger	director	PO BOX 1400, RAPID CITY SD 57709
Robert P Otto	director	PO BOX 1400, RAPID CITY SD 57709
Mark A Schober	director
Tony A Jensen	director	620 E HEARTSTRONG STREET, SUPERIOR CO 80027
Scott M Prochazka	director	1111 LOUISIANA, HOUSTON TX 77002
Teresa Taylor	director	FIRST INTERSTATE BANCSYSTEM, INC, PO BOX 30918, BILLINGS MT 59116-0918
Michael Madison	director	PO BOX 5000, PINEVILLE LA 71361-5000
John B Vering	director	PO BOX 1400, RAPID CITY SD 57709
Steven Richard Mills	director	C/O ARCHER DANIELS MIDLAND CO, 4666 FARIES PARKWAY, DECATUR IL 62526
Linden R Evans	officer: President and CEO	PO BOX 1400, RAPID CITY SD 57709
David R Emery	director, officer: Executive Chairman	P O BOX 1400, RAPID CITY SD 57709-1400