Rompetrol Rafinare (FRA:87R) Interest Coverage: 2.55 (As of Sep. 2023)

What is Rompetrol Rafinare Interest Coverage?

Rompetrol Rafinare FRA:87R Interest Coverage is 2.55 as of Sep. 2023.

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. Rompetrol Rafinare's Operating Income for the three months ended in Sep. 2023 was €68 Mil. Rompetrol Rafinare's Interest Expense for the three months ended in Sep. 2023 was €-27 Mil. Rompetrol Rafinare's interest coverage for the quarter that ended in Sep. 2023 was 2.55. The higher the ratio, the stronger the company's financial strength is.

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

FRA:87R's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 5.89
* 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.

Rompetrol Rafinare (FRA:87R) 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 .

Rompetrol Rafinare Interest Coverage Related Terms

Rompetrol Rafinare Interest Coverage Historical Data

* Premium members only.

The historical data trend for Rompetrol Rafinare'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.

Rompetrol Rafinare Interest Coverage Chart

Rompetrol Rafinare Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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1.26

0.58

0.00

3.30

Rompetrol Rafinare Quarterly Data
	Sep18	Dec18	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															4.99	3.00	3.14	0.00	2.55

FRA:87R vs : Interest Coverage Comparison

For the Oil & Gas Refining & Marketing subindustry, Rompetrol Rafinare'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.

Rompetrol Rafinare Interest Coverage vs Oil & Gas Industry

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

* The bar in red indicates where Rompetrol Rafinare's Interest Coverage falls into.

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Rompetrol Rafinare 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.

Rompetrol Rafinare's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Rompetrol Rafinare's Interest Expense was €-81 Mil. Its Operating Income was €269 Mil. And its Long-Term Debt & Capital Lease Obligation was €114 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	268.518	/	-81.327
	=	3.30

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

Here, for the three months ended in Sep. 2023, Rompetrol Rafinare's Interest Expense was €-27 Mil. Its Operating Income was €68 Mil. And its Long-Term Debt & Capital Lease Obligation was €479 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	67.993	/	-26.713
	=	2.55

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 2.55 mean?

Rompetrol Rafinare (FRA:87R) has a Interest Coverage of 2.55 as of Sep. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rompetrol Rafinare and its competitors.

Is Rompetrol Rafinare's Interest Coverage too high?

Rompetrol Rafinare's current Interest Coverage is 2.55. The Oil & Gas industry median Interest Coverage is 5.89. Rompetrol Rafinare's value of 2.55 is 56.7% below this industry median.

How does Rompetrol Rafinare's Interest Coverage compare to ?

Rompetrol Rafinare's Interest Coverage of 2.55 can be compared against companies in the Oil & Gas industry. The industry median Interest Coverage is 5.89. Rompetrol Rafinare's value of 2.55 is 56.7% 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 5.89, based on 731 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. Rompetrol Rafinare's current Interest Coverage of 2.55 is 56.7% 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 Rompetrol Rafinare and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rompetrol Rafinare's current Interest Coverage is 2.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Rompetrol Rafinare stock overvalued right now?

Rompetrol Rafinare (FRA:87R) has a current Interest Coverage of 2.55. The current Interest Coverage is 2.55 and 56.7% below the Oil & Gas industry median of 5.89. 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 Rompetrol Rafinare (FRA:87R), the current Interest Coverage is 2.55 as of Sep. 2023. 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.

Rompetrol Rafinare Business Description

Industry Energy Oil & Gas

Comparable Companies

Address Navodari Boulevard, no. 215, Administrative Building, Navodari, Constanta, ROU, 905700

Website http://www.rompetrol-rafinare.ro

Rompetrol Rafinare SA is engaged in the Refining and marketing of petrochemical products. It operates Petromidia refinery in the Black Sea coast and Vega refinery in Ploiesti city and engaged in the manufacturing and trading of Petrochemical Products and Refining products. The company's segments include Refining, Petrochemicals, and Marketing. The company products include Polypropylene, High-Density Polyethylene, Low-Density Polyethylene, Aviation fuels, Car fuels, Bitumen, and others. The company has all of its operations in Romania and also exports internationally. The majority of the revenue is generated from Romania.