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UNS Energy (FRA:UEY) Interest Coverage : 3.93 (As of Jun. 2014)


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What is UNS 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. UNS Energy's Operating Income for the three months ended in Jun. 2014 was €64 Mil. UNS Energy's Interest Expense for the three months ended in Jun. 2014 was €-16 Mil. UNS Energy's interest coverage for the quarter that ended in Jun. 2014 was 3.93. The higher the ratio, the stronger the company's financial strength is.

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

FRA:UEY' s Interest Coverage Range Over the Past 10 Years
Min: 1.05   Med: 1.4   Max: 3.39
Current: 3.39


FRA:UEY's Interest Coverage is not ranked
in the Utilities - Regulated industry.
Industry Median: 3.76 vs FRA:UEY: 3.39

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


UNS Energy Interest Coverage Historical Data

The historical data trend for UNS 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.

* Premium members only.

UNS Energy Interest Coverage Chart

UNS Energy Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.32 2.68 2.51 2.39 2.91

UNS Energy Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.58 5.59 1.77 2.10 3.93

Competitive Comparison of UNS Energy's Interest Coverage

For the Utilities - Regulated Electric subindustry, UNS 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.


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

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

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



UNS 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.

UNS Energy's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, UNS Energy's Interest Expense was €-68 Mil. Its Operating Income was €198 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,209 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2013 )/Interest Expense (A: Dec. 2013 )
=-1*198.192/-68.164
=2.91

UNS Energy's Interest Coverage for the quarter that ended in Jun. 2014 is calculated as

Here, for the three months ended in Jun. 2014, UNS Energy's Interest Expense was €-16 Mil. Its Operating Income was €64 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,286 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2014 )/Interest Expense (Q: Jun. 2014 )
=-1*63.975/-16.269
=3.93

* 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.

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


UNS Energy  (FRA:UEY) 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 .


UNS Energy Interest Coverage Related Terms

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


UNS Energy (FRA:UEY) Business Description

Traded in Other Exchanges
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Address
UNS Energy Corp is the holding company. The Company generates, purchases, transmits, distributes, and sells electric energy to retail and wholesale customers.

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