EXCE (EXCO Resources) Interest Coverage: 5.82 (As of Dec. 2018)

What is EXCO Resources Interest Coverage?

EXCO Resources EXCE Interest Coverage is 5.82 as of Dec. 2018.

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. EXCO Resources's Operating Income for the three months ended in Dec. 2018 was $46.2 Mil. EXCO Resources's Interest Expense for the three months ended in Dec. 2018 was $-7.9 Mil. EXCO Resources's interest coverage for the quarter that ended in Dec. 2018 was 5.82. The higher the ratio, the stronger the company's financial strength is.

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

EXCE's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 5.84
* 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.

EXCO Resources (OTCPK:EXCE) 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 .

EXCO Resources Interest Coverage Related Terms

EXCO Resources Interest Coverage Historical Data

* Premium members only.

The historical data trend for EXCO Resources'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.

EXCO Resources Interest Coverage Chart

EXCO Resources Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Interest Coverage

Get a 7-Day Free Trial

1.35

0.00

3.99

EXCO Resources Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
Interest Coverage	Get a 7-Day Free Trial															0.00	2.97	3.89	3.49	5.82

EXCE vs UPLC, AXAS, CHAP: Interest Coverage Comparison

For the Oil & Gas E&P subindustry, EXCO Resources'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.

EXCO Resources Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, EXCO Resources's Interest Coverage distribution charts can be found below:

* The bar in red indicates where EXCO Resources's Interest Coverage falls into.

Save Embed

EXCO Resources 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.

EXCO Resources's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, EXCO Resources's Interest Expense was $-33.9 Mil. Its Operating Income was $135.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2018 )	/	Interest Expense (A: Dec. 2018 )
	=	-1	*	135.244	/	-33.917
	=	3.99

EXCO Resources's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the three months ended in Dec. 2018, EXCO Resources's Interest Expense was $-7.9 Mil. Its Operating Income was $46.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2018 )	/	Interest Expense (Q: Dec. 2018 )
	=	-1	*	46.224	/	-7.936
	=	5.82

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

Frequently Asked Questions Learn more about Interest Coverage →

What does a Interest Coverage of 5.82 mean?

EXCO Resources (EXCE) has a Interest Coverage of 5.82 as of Dec. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on EXCO Resources and its competitors.

Is EXCO Resources' Interest Coverage too high?

EXCO Resources' current Interest Coverage is 5.82. The Oil & Gas industry median Interest Coverage is 5.84. EXCO Resources' value of 5.82 is 0.3% below this industry median.

How does EXCO Resources' Interest Coverage compare to UPLC and AXAS?

EXCO Resources' Interest Coverage of 5.82 can be compared against companies in the Oil & Gas industry. The industry median Interest Coverage is 5.84. EXCO Resources' value of 5.82 is 0.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Interest Coverage for an Oil & Gas company?

The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EXCO Resources's current Interest Coverage of 5.82 is 0.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Interest Coverage mean?

A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on EXCO Resources and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EXCO Resources's current Interest Coverage is 5.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is EXCO Resources stock overvalued right now?

EXCO Resources (EXCE) has a current Interest Coverage of 5.82. The current Interest Coverage is 5.82 and 0.3% below the Oil & Gas industry median of 5.84. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Interest Coverage calculated?

Interest Coverage is calculated from a company's financial statements. For EXCO Resources (EXCE), the current Interest Coverage is 5.82 as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

EXCO Resources Business Description

Industry Energy Oil & Gas

Comparable Companies ASX:BLU LSE:JOG LSE:TRIN XBUL:4O1 UPLC AXAS LSE:LEK LSE:GEEC PHS:OV CHAP HKSE:00702 LSE:I3E XTAE:DLRL PHS:OPM LSE:CERP PVL TSXV:CTA TSXV:CWV ISX:ENRG TSX:CR

Address 12377 Merit Drive, Suite 1700, Dallas, TX, USA, 75251

Website http://www.excoresources.com

EXCO Resources Inc is an oil and gas exploration and production company. Its operations include the exploration, acquisition, development, and production of oil and gas reserves. These activities take place in the company's onshore oilfields within the United States, and focus on shale resource plays. Its fields are located in key oil and gas areas, including Texas, Louisiana, and the Appalachian region. The Louisiana and Texas operations are the most productive fields. The majority of the company's revenue is generated from natural gas, with a smaller portion coming from oil.