Pennon Group (Pennon Group) Interest Coverage

: 1.11 (As of Sep. 2023)

View and export this data going back to 2009. Start your Free Trial

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. Pennon Group's Operating Income for the six months ended in Sep. 2023 was $111 Mil. Pennon Group's Interest Expense for the six months ended in Sep. 2023 was $-100 Mil. Pennon Group's interest coverage for the quarter that ended in Sep. 2023 was 1.11. 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. Pennon Group PLCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

PEGRY' s Interest Coverage Range Over the Past 10 Years
Min: 0.83 Med: 3.29 Max: 4.2
Current: 0.83

PEGRY's Interest Coverage is ranked worse than
94.12% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs PEGRY: 0.83

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

Pennon Group Interest Coverage Historical Data

The historical data trend for Pennon Group'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.

Pennon Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

4.20

3.84

3.36

2.58

0.94

Pennon Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial															3.29	2.08	1.33	0.48	1.11

Competitive Comparison

For the Utilities - Regulated Water subindustry, Pennon Group'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.

Pennon Group Interest Coverage Distribution

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

* The bar in red indicates where Pennon Group's Interest Coverage falls into.

Pennon Group 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.

Pennon Group's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Pennon Group's Interest Expense was $-172 Mil. Its Operating Income was $162 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,633 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	161.529	/	-172.451
	=	0.94

Pennon Group's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Pennon Group's Interest Expense was $-100 Mil. Its Operating Income was $111 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,059 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	111.015	/	-100.124
	=	1.11

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

Pennon Group (OTCPK:PEGRY) 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 .

Pennon Group Interest Coverage Related Terms

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

Pennon Group (Pennon Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Pennon Group PLC (OTCPK:PEGRY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PEGRF:USA PNNl:UK PNN:UK 3PN:Germany

Address

Peninsula House, Rydon Lane, Exeter, Devon, GBR, EX2 7HR

Website

https://www.pennon-group.co.uk

Pennon Group PLC is a British water and environmental utility infrastructure company that operates mainly in the United Kingdom. It has smaller operations in the European Union, China, and other countries. The company operates through Water, Non-household retail and other segments. The water business comprises the regulated water and wastewater services undertaken by South West Water. The non-household retail business comprises the services provided by Pennon Water Services in the non-household water and wastewater retail market. Majority of revenue is derived from the water division.

Pennon Group (Pennon Group) Headlines

From GuruFocus

Pennon Group PLC's Dividend Analysis

By GuruFocus Research • 01-24-2024