Newcrest Mining (Newcrest Mining) Interest Coverage : 8.64 (As of Jun. 2023)

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

What is Newcrest Mining 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. Newcrest Mining's Operating Income for the six months ended in Jun. 2023 was $570 Mil. Newcrest Mining's Interest Expense for the six months ended in Jun. 2023 was $-66 Mil. Newcrest Mining's interest coverage for the quarter that ended in Jun. 2023 was 8.64. The higher the ratio, the stronger the company's financial strength is.

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

NCMGY' s Interest Coverage Range Over the Past 10 Years
Min: 0.25 Med: 6.8 Max: 12.28
Current: 7.38

NCMGY's Interest Coverage is not ranked
in the Metals & Mining industry.
Industry Median: No Debt vs NCMGY: 7.38

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

Newcrest Mining Interest Coverage Historical Data

The historical data trend for Newcrest Mining'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.

Newcrest Mining Interest Coverage Chart

Newcrest Mining Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

Get a 7-Day Free Trial

7.49

6.22

12.28

11.88

7.38

Newcrest Mining Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Interest Coverage	Get a 7-Day Free Trial															11.50	7.33	16.42	6.12	8.64

Competitive Comparison of Newcrest Mining's Interest Coverage

For the Gold subindustry, Newcrest Mining'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.

Newcrest Mining's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Newcrest Mining's Interest Coverage distribution charts can be found below:

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

Newcrest Mining 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.

Newcrest Mining's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Newcrest Mining's Interest Expense was $-132 Mil. Its Operating Income was $974 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,000 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	974	/	-132
	=	7.38

Newcrest Mining's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the six months ended in Jun. 2023, Newcrest Mining's Interest Expense was $-66 Mil. Its Operating Income was $570 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,000 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	570	/	-66
	=	8.64

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

Newcrest Mining (OTCPK:NCMGY) 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 .

Newcrest Mining Interest Coverage Related Terms

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

Newcrest Mining (Newcrest Mining) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Newcrest Mining Ltd (OTCPK:NCMGY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

600 Saint Kilda Road, Level 8, Melbourne, VIC, AUS, 3004

Website

https://www.newcrest.com.au

Newcrest is an Australia-based gold and, to a lesser extent, copper miner. Operations are mainly in Australia and Papua New Guinea. The company also owns a 32% stake in the Fruta Del Norte gold mine in Ecuador, while the acquisition of Brucejack in 2022 adds to its 70% stake in the Red Chris mine in Canada. The company is likely to produce around 2 million ounces of gold per year over the next decade, making it one of the larger global gold producers but still only accounting for less than 2% of total supply. Cash costs are below the industry average, underpinned by improvements at Lihir and Cadia. Organic growth options include its Havieron prospect, the Red Chris underground mine, and the high-grade Wafi-Golpu copper-gold prospect in PNG.