ICP (IC Power) Interest Coverage: 1.42 (As of Sep. 2016)


What is IC Power Interest Coverage?

IC Power ICP Interest Coverage is 1.42 as of Sep. 2016.

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. IC Power's Operating Income for the three months ended in Sep. 2016 was $75.80 Mil. IC Power's Interest Expense for the three months ended in Sep. 2016 was $-53.52 Mil. IC Power's interest coverage for the quarter that ended in Sep. 2016 was 1.42. The higher the ratio, the stronger the company's financial strength is.

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


ICP's Interest Coverage is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 2.95
* 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.

IC Power  (NYSE:ICP) 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 .

IC Power Interest Coverage Related Terms

IC Power Interest Coverage Historical Data

* Premium members only.

The historical data trend for IC Power'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.

IC Power Interest Coverage Chart

IC Power Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Interest Coverage
2.18 2.16 2.83 2.05

IC Power Quarterly Data
Dec12 Dec13 Mar14 Jun14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.71 3.10 1.96 1.01 1.42

ICP vs CETY, QPWR, PSPW: Interest Coverage Comparison

For the Utilities - Independent Power Producers subindustry, IC Power'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.

IC Power Interest Coverage vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, IC Power's Interest Coverage distribution charts can be found below:

* The bar in red indicates where IC Power's Interest Coverage falls into.


IC Power 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.

IC Power's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, IC Power's Interest Expense was $-98.92 Mil. Its Operating Income was $202.66 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,212.07 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2015 )/Interest Expense (A: Dec. 2015 )
=-1*202.66/-98.922
=2.05

IC Power's Interest Coverage for the quarter that ended in Sep. 2016 is calculated as

Here, for the three months ended in Sep. 2016, IC Power's Interest Expense was $-53.52 Mil. Its Operating Income was $75.80 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,950.29 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2016 )/Interest Expense (Q: Sep. 2016 )
=-1*75.799/-53.517
=1.42

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 1.42 mean?
IC Power (ICP) has a Interest Coverage of 1.42 as of Sep. 2016. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on IC Power and its competitors.
Is IC Power's Interest Coverage too high?
IC Power's current Interest Coverage is 1.42. The Utilities - Independent Power Producers industry median Interest Coverage is 2.95. IC Power's value of 1.42 is 51.9% below this industry median.
How does IC Power's Interest Coverage compare to CETY and QPWR?
IC Power's Interest Coverage of 1.42 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Interest Coverage is 2.95. IC Power's value of 1.42 is 51.9% 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 Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.95, based on 320 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. IC Power's current Interest Coverage of 1.42 is 51.9% 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 IC Power and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IC Power's current Interest Coverage is 1.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IC Power stock overvalued right now?
IC Power (ICP) has a current Interest Coverage of 1.42. The current Interest Coverage is 1.42 and 51.9% below the Utilities - Independent Power Producers industry median of 2.95. 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 IC Power (ICP), the current Interest Coverage is 1.42 as of Sep. 2016. 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.

IC Power Business Description

IC Power Pte Ltd is a holding company incorporated under the laws of Singapore in May 2015. The Company through its subsidiaries owns, develops and operates power facilities located in power generation markets in Latin America, the Caribbean and Israel, utilizing a range of fuels, including natural gas, hydroelectric, HFO, diesel and wind. The Company has installed capacity of approximately 2,642 MW. The Company operates in geographical areas including Peru; Israel; Central America including Nicaragua, Guatemala, El Salvador & Panama; and other including Bolivia, Chile, Jamaica, Colombia & Dominican Republic. The Company owns, operates and develops power plants to generate and sell electricity to distribution companies and unregulated consumers under long-term PPAs and to the spot market. The Company Peru segment includes Kallpa I, Kallpa II, Kallpa III, Kallpa IV and Las Flores turbines. The Israel segment includes OPC plant. The Central America segment includes Corinto, Tipitapa Power, Amayo I, and Amayo II in Nicaragua; Puerto Quetzal plant in Guatemala; Nejapa plant in El Salvador, and Kanan plant in Panama. The Other segment includes Zongo Valley plants including Zongo, Tiquimani, Botijlaca, Cutichucho, Santa Rosa, Sainani, Chururaqui, Harca, Cahua, & Huaji; and Miguillas Valley plants including Miguillas, Angostura, Choquetanga, Carabuco, and El Alto-Kenko all in Bolivia; Central Cardones plant in Chile; Colmito plant in Colmito; CEPP I & CEPP II in Dominican Republic; JPPC plant in Jamaica; La Hocha, Purificación, and Entrerios plants in Colombia; Pedregal in Panama. The Company offers services to governments, local distribution companies, and/or non-regulated consumers, depending upon the operating company and the particular country of operation. Its customers include Edelnor S.A.A., Luz del Sur S.A.A., Hidrandina S.A., Edecañete S.A., Electro Sur Este S.A.A., Sociedad Eléctrica del Sur Oeste, S.A., Distribuidora de Electricidad del Norte S.A., Distribuidora de Electricidad del Sur S.A., Southern Perú Copper Corporation, Empresa de Distribución Eléctrica Chiriqui, S.A., Peruvian Investment Promotion Agency, Empresa de Distribución Eléctrica Metro Oeste S.A., and others. The Company's competitors include IEC, Dorad Energy Ltd., and other IPPs. The Company's business is subject to significant and diverse government regulation.