NV Energy (FRA:SRQ) Interest Coverage : 4.84 (As of Sep. 2013)

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What is NV Energy 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. NV Energy's Operating Income for the three months ended in Sep. 2013 was €270 Mil. NV Energy's Interest Expense for the three months ended in Sep. 2013 was €-56 Mil. NV Energy's interest coverage for the quarter that ended in Sep. 2013 was 4.84. The higher the ratio, the stronger the company's financial strength is.

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

FRA:SRQ' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 2.45
Current: 2.45

FRA:SRQ's Interest Coverage is not ranked
in the Utilities - Regulated industry.
Industry Median: 3.87 vs FRA:SRQ: 2.45

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

NV Energy Interest Coverage Historical Data

The historical data trend for NV Energy'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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NV Energy Interest Coverage Chart

NV Energy Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Interest Coverage

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1.84

1.68

51.48

1.83

2.56

NV Energy Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
Interest Coverage	Get a 7-Day Free Trial															5.43	1.29	1.42	2.30	4.84

Competitive Comparison of NV Energy's Interest Coverage

For the Utilities - Regulated Electric subindustry, NV Energy'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.

NV Energy's Interest Coverage Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where NV Energy's Interest Coverage falls into.

NV Energy 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.

NV Energy's Interest Coverage for the fiscal year that ended in Dec. 2012 is calculated as

Here, for the fiscal year that ended in Dec. 2012, NV Energy's Interest Expense was €-234 Mil. Its Operating Income was €598 Mil. And its Long-Term Debt & Capital Lease Obligation was €3,558 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2012 )	/	Interest Expense (A: Dec. 2012 )
	=	-1	*	598.218	/	-234.09
	=	2.56

NV Energy's Interest Coverage for the quarter that ended in Sep. 2013 is calculated as

Here, for the three months ended in Sep. 2013, NV Energy's Interest Expense was €-56 Mil. Its Operating Income was €270 Mil. And its Long-Term Debt & Capital Lease Obligation was €3,584 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2013 )	/	Interest Expense (Q: Sep. 2013 )
	=	-1	*	270.493	/	-55.89
	=	4.84

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

NV Energy (FRA:SRQ) 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 .

NV Energy Interest Coverage Related Terms

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

NV Energy (FRA:SRQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » NV Energy Inc (FRA:SRQ) » Definitions » Interest Coverage

Comparable Companies

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Address

Website

http://www.nvenergy.com

NV Energy, Inc., is an investor-owned holding Company that was incorporated under Nevada law on December 12, 1983. The Company has four main, wholly-owned subsidiaries: Nevada Power Company d/b/a NV Energy, Sierra Pacific Power Company d/b/a NV Energy, NVE Insurance Company, Inc. and Lands of Sierra. The Company's Utilities operate three regulated business segments which are NPC electric, SPPC electric and SPPC natural gas. The Utilities are public utilities engaged in the generation, transmission, distribution and sale of electricity and, in the case of SPPC, sale of natural gas. NPC and SPPC are public utilities that generate, transmit and distribute electric energy in Nevada and, in the case of SPPC also deliver natural gas service. At year-end 2011, NVE served approximately 1.2 million electric customers, of which 840,000 electric customers primarily in Las Vegas, North Las Vegas, Henderson and adjoining areas were served by NPC, and approximately 323,000 electric customers in an approximate 50,000 square mile area of western, central and northeastern Nevada, including the cities of Reno, Sparks, Carson City, and Elko were served by SPPC. Additionally, SPPC provided natural gas service to approximately 152,000 customers in an area of about 800 square miles in Nevada's Reno/Sparks area. Major industries served by the Utilities include gaming/recreation, mining, warehousing/manufacturing and governmental entities. The Utilities are subject to extensive federal, state and local laws and regulations relating to environmental protection.

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