Nighthawk Energy (LSE:HAWK) Interest Coverage: 0 (At Loss) (As of Jun. 2017)


What is Nighthawk Energy Interest Coverage?

Nighthawk Energy LSE:HAWK Interest Coverage is 0 (At Loss) as of Jun. 2017. The stock has 4 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. Nighthawk Energy's Operating Income for the six months ended in Jun. 2017 was £-0.32 Mil. Nighthawk Energy's Interest Expense for the six months ended in Jun. 2017 was £-2.45 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Nighthawk Energy PLCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

LSE:HAWK' s Interest Coverage Range Over the Past 10 Years
Min: 0.04   Med: 5002.45   Max: No Debt
Current: 0.1


LSE:HAWK's Interest Coverage is not ranked
in the Oil & Gas industry.
Industry Median: 5.89 vs LSE:HAWK: 0.10

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


Nighthawk Energy  (LSE:HAWK) 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 .


Nighthawk Energy Interest Coverage Related Terms


Nighthawk Energy Interest Coverage Historical Data

* Premium members only.

The historical data trend for Nighthawk 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.

Nighthawk Energy Interest Coverage Chart

Nighthawk Energy Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Dec13 Dec14 Dec15 Dec16
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 4.90 0.04 2.12 0.47

Nighthawk Energy Semi-Annual Data
Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
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 1.75 2.41 0.58 0.36 0.00

LSE:HAWK vs FPPP, UNGS, GBEYF: Interest Coverage Comparison

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


Nighthawk Energy Interest Coverage vs Oil & Gas Industry

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

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



Nighthawk 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.

Nighthawk Energy's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, Nighthawk Energy's Interest Expense was £-4.28 Mil. Its Operating Income was £2.01 Mil. And its Long-Term Debt & Capital Lease Obligation was £22.08 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2016 )/Interest Expense (A: Dec. 2016 )
=-1*2.006/-4.279
=0.47

Nighthawk Energy's Interest Coverage for the quarter that ended in Jun. 2017 is calculated as

Here, for the six months ended in Jun. 2017, Nighthawk Energy's Interest Expense was £-2.45 Mil. Its Operating Income was £-0.32 Mil. And its Long-Term Debt & Capital Lease Obligation was £23.49 Mil.

Nighthawk Energy did not have earnings to cover the interest expense.

* 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 0 (At Loss) mean?
Nighthawk Energy (LSE:HAWK) has a Interest Coverage of 0 (At Loss) as of Jun. 2017. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nighthawk Energy and its competitors. Over the past decade, Nighthawk Energy's Interest Coverage has ranged from 0.04 to 10,000.00.
Is Nighthawk Energy's Interest Coverage too high?
Nighthawk Energy's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 10,000.00.
How does Nighthawk Energy's Interest Coverage compare to FPPP and UNGS?
Nighthawk Energy's Interest Coverage of 0 (At Loss) can be compared against companies in the Oil & Gas industry. The industry median Interest Coverage is 5.89. Historically, Nighthawk Energy's own Interest Coverage has ranged from 0.04 to 10,000.00 over the past decade. 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 730 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 Nighthawk Energy 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. Nighthawk Energy'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 Nighthawk Energy stock overvalued right now?
Nighthawk Energy (LSE:HAWK) 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 Nighthawk Energy (LSE:HAWK), the current Interest Coverage is 0 (At Loss) as of Jun. 2017. 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.

Nighthawk Energy Business Description

Industry EnergyOil & Gas
Address One London Wall, 6th Floor, London, GBR, EC2Y 5EB
Nighthawk Energy PLC is an independent exploration and production company that operates in the Eastern Colorado plains. The company through its subsidiaries are focused primarily on the exploration and development of oil-producing assets located in and around Lincoln County, Colorado, United States of America. It has only one operating segment: Production of, Exploration for, and Investment in Hydrocarbons. The company holds a working interest in and is the operator of Smoky Hill and Jolly Ranch projects. Its current projects span approximately 150,000 net acres across Lincoln, Elbert, and Washington Counties, Colorado.