Acciona (LTS:0H4K) Interest Coverage : 1.19 (As of Jun. 2024)

View and export this data going back to 2007. Start your Free Trial

What is Acciona 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. Acciona's Operating Income for the six months ended in Jun. 2024 was €371 Mil. Acciona's Interest Expense for the six months ended in Jun. 2024 was €-311 Mil. Acciona's interest coverage for the quarter that ended in Jun. 2024 was 1.19. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Acciona SA interest coverage is 1.16, which is low.

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

LTS:0H4K' s Interest Coverage Range Over the Past 10 Years
Min: 0.62 Med: 1.72 Max: 4.51
Current: 1.16

LTS:0H4K's Interest Coverage is ranked worse than
89.17% of 1293 companies
in the Construction industry
Industry Median: 6.79 vs LTS:0H4K: 1.16

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

Acciona Interest Coverage Historical Data

The historical data trend for Acciona'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.

Acciona Interest Coverage Chart

Acciona Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

2.61

1.43

2.84

4.51

2.15

Acciona Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Interest Coverage	Get a 7-Day Free Trial															5.50	3.70	3.59	1.12	1.19

Competitive Comparison of Acciona's Interest Coverage

For the Engineering & Construction subindustry, Acciona'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.

Acciona's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Acciona's Interest Coverage distribution charts can be found below:

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

Acciona 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.

Acciona's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Acciona's Interest Expense was €-511 Mil. Its Operating Income was €1,101 Mil. And its Long-Term Debt & Capital Lease Obligation was €8,736 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1101	/	-511
	=	2.15

Acciona's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Acciona's Interest Expense was €-311 Mil. Its Operating Income was €371 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,449 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2024 )	/	Interest Expense (Q: Jun. 2024 )
	=	-1	*	371	/	-311
	=	1.19

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

Acciona (LTS:0H4K) 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 .

Acciona Interest Coverage Related Terms

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

Acciona Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Acciona SA (LTS:0H4K) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ACXIF:USA ANAe:UK ANA:Spain AJ3:Germany ANA:Austria

Address

Avenida de Europa 18, Parque Empresarial La Moraleja, Alcobendas, Madrid, ESP, 28108

Website

https://www.acciona.com

Acciona SA is an engineering and construction firm providing sustainable solutions for infrastructure and renewable energy projects across the world. It works in various phases, from design and construction to operations and maintenance. The company operates two business divisions energy and infrastructure. The infrastructure division encompasses construction, water treatment, industrial, and service business lines. Projects may be granted under concessions from governments or acquired independently when Acciona identifies an opportunity. Energy developments focus on renewable technologies and primarily revolve around wind, solar, hydro, and biomass. The company has a presence on five continents and utilizes an organizational structure to ensure availability.

Acciona Headlines

No Headlines