Empire District Electric Co (Empire District Electric Co) Interest Coverage : 3.40 (As of Sep. 2016)

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What is Empire District 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. Empire District Electric Co's Operating Income for the three months ended in Sep. 2016 was $39.0 Mil. Empire District Electric Co's Interest Expense for the three months ended in Sep. 2016 was $-11.5 Mil. Empire District Electric Co's interest coverage for the quarter that ended in Sep. 2016 was 3.40. The higher the ratio, the stronger the company's financial strength is.

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

EDE's Interest Coverage is not ranked ^*
in the Utilities - Regulated industry.
Industry Median: 3.73
* 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.

Empire District Electric Co Interest Coverage Historical Data

The historical data trend for Empire District 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.

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Empire District Electric Co Interest Coverage Chart

Empire District Electric Co Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

Get a 7-Day Free Trial

2.35

2.36

2.40

2.14

Empire District Electric Co Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Interest Coverage	Get a 7-Day Free Trial															3.38	1.45	2.20	2.29	3.40

Competitive Comparison of Empire District Electric Co's Interest Coverage

For the Utilities - Regulated Electric subindustry, Empire District 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.

Empire District Electric Co's Interest Coverage Distribution in the Utilities - Regulated Industry

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

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

Empire District 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.

Empire District Electric Co's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Empire District Electric Co's Interest Expense was $-45.1 Mil. Its Operating Income was $96.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $829.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	96.301	/	-45.103
	=	2.14

Empire District Electric Co's Interest Coverage for the quarter that ended in Sep. 2016 is calculated as

Here, for the three months ended in Sep. 2016, Empire District Electric Co's Interest Expense was $-11.5 Mil. Its Operating Income was $39.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $829.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2016 )	/	Interest Expense (Q: Sep. 2016 )
	=	-1	*	39.014	/	-11.465
	=	3.40

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

Empire District Electric Co (NYSE:EDE) 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 .

Empire District Electric Co Interest Coverage Related Terms

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

Empire District Electric Co (Empire District Electric Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Empire District Electric Co (NYSE:EDE) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Website

http://www.empiredistrict.com

Empire District Electric Co is a Kansas corporation organized in 1909. The Company is an operating public utility engaged in the generation, purchase, transmission, distribution and sale of electricity in parts of Missouri, Kansas, Oklahoma and Arkansas. The Company operates its businesses as three segments; Electric, Gas and Other. The Company also provides water service to three towns in Missouri. The Company, along with its subsidiary The Empire District Gas Company, is engaged in the distribution of natural gas in Missouri. The Other segment consists of fiber optics business. As of December 31, 2013 the Company's electric operations serve approximately 168,800 customers and gas operations serve approximately 44,000 customers. The territory served by electric operations embraces an area of about 10,000 square miles, located principally in southwestern Missouri, and also includes smaller areas in southeastern Kansas, northeastern Oklahoma and northwestern Arkansas. The Company supplies electric service at retail to 119 incorporated communities as of December 31, 2013, and to various unincorporated areas and at wholesale to four municipally owned distribution systems. The Company operates under franchises having original terms of twenty years or longer in the incorporated communities. The three largest classes of on-system customers are residential, commercial and industrial. The largest single on-system wholesale customer is the city of Monett, Missouri. The Company currently supplements its on-system generating capacity with purchases of capacity and energy from other sources in order to meet the demands of its customers and the capacity margins applicable under current pooling agreements and National Electric Reliability Council rules. The generating facilities consist of three coal-fired generating plants, two natural gas generating plants and one hydroelectric generating plant. The Company's gas operations serve customers in northwest, north central and west central Missouri. As of December 31, 2013, gas operations served approximately 44,000 customers. The Company provides natural gas distribution to 48 communities and 377 transportation customers as of December 31, 2013. At December 31, 2013 the principal gas utility properties of the Company consisted of approximately 87 miles of transmission mains and approximately 1,160 miles of distribution mains. The three pipelines that serve the Company's gas customers are Southern Star Central Gas Pipeline, Panhandle Eastern Pipe Line Company and ANR Pipeline Company. The Company is subject to the jurisdiction of the Missouri Public Service Commission (MPSC), the State Corporation Commission of the State of Kansas (KCC), the Corporation Commission of Oklahoma (OCC) and the Arkansas Public Service Commission (APSC) with respect to services and facilities, rates and charges, regulatory accounting, valuation of property, depreciation and various other matters.

Executives

Herbert J Schmidt	director	1950 LAKE RIDGE DRIVE, THE VILLAGES FL 32162
Ross C Hartley	director	P O BOX 477 TENTON VILLAGE WY 83025
Thomas M Ohlmacher	director	P O BOX 1400, RAPID CITY SD 57709-1400
Bonnie Cruickshank Lind	director	3460 PRESTON RIDGE ROAD, ALPHARETTA GA 30005
Francis E Jeffries	director	800 SCUDDERS HILL ROAD, PLAINSBORO NJ 08536