BPZ Resources (FRA:NA4) Interest Coverage: 0 (At Loss) (As of Mar. 2015)

What is BPZ Resources Interest Coverage?

BPZ Resources FRA:NA4 Interest Coverage is 0 (At Loss) as of Mar. 2015. The stock has 2 warning signs investors should review.

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. BPZ Resources's Operating Income for the three months ended in Mar. 2015 was €-7.51 Mil. BPZ Resources's Interest Expense for the three months ended in Mar. 2015 was €-5.52 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

FRA:NA4's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 5.88
* 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.

BPZ Resources (FRA:NA4) 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 .

BPZ Resources Interest Coverage Related Terms

BPZ Resources Interest Coverage Historical Data

* Premium members only.

The historical data trend for BPZ 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.

BPZ Resources Interest Coverage Chart

BPZ Resources Annual Data

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Interest Coverage

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BPZ Resources Quarterly Data
	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15
Interest Coverage	Get a 7-Day Free Trial															0.55	1.24	0.00	0.00	0.00

BPZ Resources Interest Coverage Competitor Comparison

For the Oil & Gas E&P subindustry, BPZ 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.

BPZ Resources Interest Coverage vs Oil & Gas Industry

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

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

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BPZ 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.

BPZ Resources's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, BPZ Resources's Interest Expense was €-15.14 Mil. Its Operating Income was €-46.77 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.00 Mil.

BPZ Resources did not have earnings to cover the interest expense.

BPZ Resources's Interest Coverage for the quarter that ended in Mar. 2015 is calculated as

Here, for the three months ended in Mar. 2015, BPZ Resources's Interest Expense was €-5.52 Mil. Its Operating Income was €-7.51 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.00 Mil.

BPZ Resources did not have earnings to cover the interest expense.

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 0 (At Loss) mean?

BPZ Resources (FRA:NA4) has a Interest Coverage of 0 (At Loss) as of Mar. 2015. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on BPZ Resources and its competitors.

Is BPZ Resources' Interest Coverage too high?

BPZ Resources' current Interest Coverage is 0 (At Loss).

How does BPZ Resources' Interest Coverage compare to competitors?

BPZ Resources' Interest Coverage of 0 (At Loss) can be compared against companies in the Oil & Gas industry. The industry median Interest Coverage is 5.88. 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 5.88, based on 729 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. 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 BPZ Resources and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BPZ Resources's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is BPZ Resources stock overvalued right now?

BPZ Resources (FRA:NA4) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). 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 BPZ Resources (FRA:NA4), the current Interest Coverage is 0 (At Loss) as of Mar. 2015. 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.

BPZ Resources Business Description

Industry Energy Oil & Gas

Comparable Companies STU:01G STU:MIR1 FRA:PAP1 STU:O3X2 FRA:0AMN FRA:C2Z1 STU:62B2 STU:PUQ3 FRA:8P2N FRA:45G1 FRA:O2EN FRA:V5D STU:YQNP FRA:3P4A FRA:52L1 FRA:3UM FRA:CP1 STU:E8U FRA:56M FRA:AJ4

Website http://www.bpzenergy.com

BPZ Resources Inc is a Texas corporation, incorporated in 1993. The Company is an independent oil and gas company engaged in the exploration, development and production of oil and natural gas in Peru and Ecuador. The Company is in the process of developing its Peruvian oil and gas reserves. It has completed the installation of the new CX-15 platform in the Corvina field to continue the development of the field and continued its drilling campaign there with completion of the CX-15-1D well. The customer of the Company is Peruvian national oil company, Petroleos del Peru - PETROPERU S.A.