Slovnaft AS (LTS:0MZI) Interest Coverage: 23.60 (As of Dec. 2019) — 43% Above Median


What is Slovnaft AS Interest Coverage?

Slovnaft AS LTS:0MZI 8 Interest Coverage is 23.60 as of Dec. 2019, which is 43% above its 10-year median of 16.47. GuruFocus rates LTS:0MZI with a GF Score™ of 8/100. The stock has 5 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. Slovnaft AS's Operating Income for the six months ended in Dec. 2019 was €44.08 Mil. Slovnaft AS's Interest Expense for the six months ended in Dec. 2019 was €-1.87 Mil. Slovnaft AS's interest coverage for the quarter that ended in Dec. 2019 was 23.60. The higher the ratio, the stronger the company's financial strength is.

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

LTS:0MZI' s Interest Coverage Range Over the Past 10 Years
Min: 0.87   Med: 16.47   Max: 72.57
Current: 16.47


LTS:0MZI's Interest Coverage is not ranked
in the Oil & Gas industry.
Industry Median: 5.89 vs LTS:0MZI: 16.47

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


Slovnaft AS  (LTS:0MZI) 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 .


Slovnaft AS Interest Coverage Related Terms


Slovnaft AS Interest Coverage Historical Data

* Premium members only.

The historical data trend for Slovnaft AS'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.

Slovnaft AS Interest Coverage Chart

Slovnaft AS Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 72.57 38.53 66.46 66.39 16.47

Slovnaft AS Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
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 95.85 118.28 7.01 8.54 23.60

LTS:0MZI vs NGL, INT, SUN: Interest Coverage Comparison

For the Oil & Gas Refining & Marketing subindustry, Slovnaft AS'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.


Slovnaft AS Interest Coverage vs Oil & Gas Industry

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

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



Slovnaft AS 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.

Slovnaft AS's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Slovnaft AS's Interest Expense was €-3.55 Mil. Its Operating Income was €58.41 Mil. And its Long-Term Debt & Capital Lease Obligation was €53.61 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2019 )/Interest Expense (A: Dec. 2019 )
=-1*58.406/-3.546
=16.47

Slovnaft AS's Interest Coverage for the quarter that ended in Dec. 2019 is calculated as

Here, for the six months ended in Dec. 2019, Slovnaft AS's Interest Expense was €-1.87 Mil. Its Operating Income was €44.08 Mil. And its Long-Term Debt & Capital Lease Obligation was €53.61 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2019 )/Interest Expense (Q: Dec. 2019 )
=-1*44.084/-1.868
=23.60

* 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 23.60 mean?
Slovnaft AS (LTS:0MZI) has a Interest Coverage of 23.60 as of Dec. 2019. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Slovnaft AS and its competitors. This is 43% above median its historical median of 16.47. Over the past decade, Slovnaft AS's Interest Coverage has ranged from 0.87 to 72.57.
Is Slovnaft AS's Interest Coverage too high?
Slovnaft AS's current Interest Coverage of 23.60 is 43% above median its 10-year median of 16.47. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 72.57. The Oil & Gas industry median Interest Coverage is 5.89. Slovnaft AS's value of 23.60 is 300.7% above this industry median. Overall, Slovnaft AS has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Slovnaft AS's Interest Coverage compare to NGL and INT?
Slovnaft AS's Interest Coverage of 23.60 can be compared against companies in the Oil & Gas industry. The industry median Interest Coverage is 5.89. Slovnaft AS's value of 23.60 is 300.7% above this benchmark. Historically, Slovnaft AS's own Interest Coverage has ranged from 0.87 to 72.57 over the past decade. While the company's 10-year median is 16.47 vs. the industry median of 5.89, Slovnaft AS has consistently been above the industry average. 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 731 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. Slovnaft AS's current Interest Coverage of 23.60 is 300.7% above 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 Slovnaft AS 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. Slovnaft AS's current Interest Coverage is 23.60, which is 43% above median its own 10-year median of 16.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Slovnaft AS stock overvalued right now?
Slovnaft AS (LTS:0MZI) has a current Interest Coverage of 23.60. The current Interest Coverage is 23.60, which is 43% above median its 10-year median of 16.47 and 300.7% above the Oil & Gas industry median of 5.89. Slovnaft AS's overall GF Score™ is 8/100 with 5 warning signs to review. 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 Slovnaft AS (LTS:0MZI), the current Interest Coverage is 23.60 as of Dec. 2019. 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.

Slovnaft AS Business Description

Industry EnergyOil & Gas
Address Vlcie hrdlo 1, Bratislava, SVK, 824 12
Slovnaft AS is engaged in processing crude oil and motor fuels, heating oils and other products, their distribution and sale to wholesale customers as well as to end-customers through its own network of service stations. The group manages its operations in the following segments: Refining and Marketing, Retail, and Other segments. Refining and Marketing segment processes crude oil and markets refinery products and plastics. The retail segment operates a network of petrol stations. It generates maximum revenue from the Refining and Marketing segment. Geographically, it derives a majority of revenue from the Slovak Republic and also has a presence in Czech Republic, Austria, Hungary, Poland, Germany, Italy, Croatia, Romania, The Netherlands, Serbia, and Other Countries.