Teekay LNG Partners LP (Teekay LNG Partners LP) Interest Coverage : 1.56 (As of Dec. 2023)

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What is Teekay LNG Partners 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. Teekay LNG Partners LP's Operating Income for the three months ended in Dec. 2023 was $72.0 Mil. Teekay LNG Partners LP's Interest Expense for the three months ended in Dec. 2023 was $-46.2 Mil. Teekay LNG Partners LP's interest coverage for the quarter that ended in Dec. 2023 was 1.56. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Teekay LNG Partners LP interest coverage is 2.21, which is low.

The historical rank and industry rank for Teekay LNG Partners LP's Interest Coverage or its related term are showing as below:

TGP' s Interest Coverage Range Over the Past 10 Years
Min: 1.59 Med: 3.14 Max: 4.29
Current: 2.21

TGP's Interest Coverage is not ranked
in the Oil & Gas industry.
Industry Median: 6.72 vs TGP: 2.21

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

Teekay LNG Partners LP Interest Coverage Historical Data

The historical data trend for Teekay LNG Partners 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.

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Teekay LNG Partners LP Interest Coverage Chart

Teekay LNG Partners LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.76

2.09

2.10

1.71

1.53

Teekay LNG Partners LP 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															1.66	1.53	1.62	1.42	1.56

Competitive Comparison of Teekay LNG Partners LP's Interest Coverage

For the Oil & Gas Midstream subindustry, Teekay LNG Partners 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.

Teekay LNG Partners LP's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Teekay LNG Partners LP's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Teekay LNG Partners LP's Interest Coverage falls into.

Teekay LNG Partners 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.

Teekay LNG Partners LP'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, Teekay LNG Partners LP's Interest Expense was $-187.5 Mil. Its Operating Income was $287.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,442.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	287.275	/	-187.506
	=	1.53

Teekay LNG Partners LP's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Teekay LNG Partners LP's Interest Expense was $-46.2 Mil. Its Operating Income was $72.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,442.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	72.021	/	-46.158
	=	1.56

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

Teekay LNG Partners LP (NYSE:TGP) 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 .

Teekay LNG Partners LP Interest Coverage Related Terms

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

Teekay LNG Partners LP (Teekay LNG Partners LP) Business Description

Industry

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Traded in Other Exchanges

SEALpB.PFD:USA SEALpA.PFD:USA

Address

550 Burrard Street, Suite 2000, Bentall 5, Vancouver, BC, CAN, V6C 2K2

Website

https://www.seapeak.com

Seapeak LLC is a provider of marine transportation services for liquefied natural gas, liquefied petroleum gas and crude oil. The company operates into two segments namely: the LNG segment and the NGL segment. The Company has renamed its LPG segment as the NGL segment. LNG segment consists of LNG carriers which generally operate under long-term, fixed-rate charters to international energy companies. NGL segment consists of LPG, Ethane and multi-gas carriers which generally operate under voyage charters or time charters. It derives maximum revenue from the LNG segment. The majority of these services are provided through either a time charter, voyage charter, and bareboat charter contract.