El Paso Electric Co (El Paso Electric Co) Interest Coverage : 0.08 (As of Mar. 2020)

View and export this data going back to 1994. Start your Free Trial

What is El Paso Electric 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. El Paso Electric Co's Operating Income for the three months ended in Mar. 2020 was $1.7 Mil. El Paso Electric Co's Interest Expense for the three months ended in Mar. 2020 was $-21.0 Mil. El Paso Electric Co's interest coverage for the quarter that ended in Mar. 2020 was 0.08. The higher the ratio, the stronger the company's financial strength is.

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

EE' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 2.05
Current: 2.05

EE's Interest Coverage is not ranked
in the Utilities - Regulated industry.
Industry Median: 3.73 vs EE: 2.05

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

El Paso Electric Co Interest Coverage Historical Data

The historical data trend for El Paso Electric 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.

* Premium members only.

El Paso Electric Co Interest Coverage Chart

El Paso Electric Co Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Interest Coverage

Get a 7-Day Free Trial

2.65

2.38

2.29

2.05

2.06

El Paso Electric Co Quarterly Data
	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20
Interest Coverage	Get a 7-Day Free Trial															0.20	2.15	5.26	0.62	0.08

Competitive Comparison of El Paso Electric Co's Interest Coverage

For the Utilities - Regulated Electric subindustry, El Paso Electric 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.

El Paso Electric Co's Interest Coverage Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where El Paso Electric Co's Interest Coverage falls into.

El Paso Electric 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.

El Paso Electric Co's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, El Paso Electric Co's Interest Expense was $-86.4 Mil. Its Operating Income was $178.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,341.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2019 )	/	Interest Expense (A: Dec. 2019 )
	=	-1	*	178.093	/	-86.41
	=	2.06

El Paso Electric Co's Interest Coverage for the quarter that ended in Mar. 2020 is calculated as

Here, for the three months ended in Mar. 2020, El Paso Electric Co's Interest Expense was $-21.0 Mil. Its Operating Income was $1.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,341.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2020 )	/	Interest Expense (Q: Mar. 2020 )
	=	-1	*	1.698	/	-21.027
	=	0.08

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

El Paso Electric Co (NYSE:EE) 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 .

El Paso Electric Co Interest Coverage Related Terms

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

El Paso Electric Co (El Paso Electric Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » El Paso Electric Co (NYSE:EE) » Definitions » Interest Coverage

Comparable Companies

PNM POR HE KEN IDA SPKE GNE SUME OGE PCG NEE DUK SO AEP XEL WEC ES HKSE:00002 ED XMAD:ELE

Traded in Other Exchanges

N/A

Address

100 North Stanton, Stanton Tower, El Paso, TX, USA, 79901

Website

https://www.epelectric.com

El Paso Electric Co is a Texas-based public utility company engaged in the generation, transmission, and distribution of electricity in the Southwestern U.S. The company principally serves retail customers in the El Paso, Texas and Las Cruces, New Mexico markets through its portfolio of nuclear, natural gas, coal, solar, and wind power plants. The vast majority of the total power produced by El Paso Electric is derived from its nuclear and natural gas facilities. The company generates most of its revenue from the production and sale of energy. Distribution service fees also represent a significant income stream. El Paso Electric primarily serves residential and small industrial customers, but also participates in wholesale transactions with local military installations and universities.

Executives

James W Cicconi	director	208 S. AKARD ST., DALLAS TX 75202
Charles Yamarone	director	123 W MILLS, EL PASO TX 79901
Eric B Siegel	director	123 W MILLS, EL PASO TX 79901
Stephen Wertheimer	director	123 W MILLS, EL PASO TX 79901
Paul M Barbas	director	C/O DPL INC., 1065 WOODMAN DRIVE, DAYTON OH 45432
Catherine A Allen	director	5 SAN SEBASTIAN ROAD, SANTA FE NM 87505
William Stiller	officer: SVP & Chief HRO	1601 W. LBJ FREEWAY, DALLAS TX 75234
Woody L Hunt	director	4401 NORTH MESA, EL PASO TX 79902
Shockley Thomas V Iii	director	602 CIMARRON HILLS TRAIL WEST, GEORGETOWN TX 78628
Michael K Parks	director	123 W MILLS, EL PASO TX 79901
Steven P Busser	officer: VP-TREASURER	C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105
Kenneth Heitz	director	123 W MILLS, EL PASO TX 79901
Edwards George W Jr	director	123 W MILLS, EL PASO TX 79901
Redd Ershel C Jr	officer: President and CEO	C/O EL PASO ELECTRIC COMPANY, 100 N. STANTON, EL PASO TX 79901
Terry D Bassham	officer: Exec VP & Chief Fin & Admin	COMMERCE BANK, PO BOX 419248, KANSAS CITY MO 64141-6248