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VOPKY (Koninklijke Vopak NV) Interest Coverage : 3.81 (As of Jun. 2024)


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What is Koninklijke Vopak NV 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. Koninklijke Vopak NV's Operating Income for the six months ended in Jun. 2024 was $227 Mil. Koninklijke Vopak NV's Interest Expense for the six months ended in Jun. 2024 was $-60 Mil. Koninklijke Vopak NV's interest coverage for the quarter that ended in Jun. 2024 was 3.81. The higher the ratio, the stronger the company's financial strength is.

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

VOPKY' s Interest Coverage Range Over the Past 10 Years
Min: 2.9   Med: 3.96   Max: 4.8
Current: 3.13


VOPKY's Interest Coverage is ranked worse than
70.64% of 729 companies
in the Oil & Gas industry
Industry Median: 6.06 vs VOPKY: 3.13

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


Koninklijke Vopak NV Interest Coverage Historical Data

The historical data trend for Koninklijke Vopak NV'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.

Koninklijke Vopak NV Interest Coverage Chart

Koninklijke Vopak NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.02 3.89 2.93 2.90 3.25

Koninklijke Vopak NV 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 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 2.76 3.05 3.90 2.50 3.81

Competitive Comparison of Koninklijke Vopak NV's Interest Coverage

For the Oil & Gas Midstream subindustry, Koninklijke Vopak NV'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.


Koninklijke Vopak NV's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Koninklijke Vopak NV's Interest Coverage falls into.



Koninklijke Vopak NV 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.

Koninklijke Vopak NV'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, Koninklijke Vopak NV's Interest Expense was $-143 Mil. Its Operating Income was $466 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,449 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*465.54/-143.075
=3.25

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

Here, for the six months ended in Jun. 2024, Koninklijke Vopak NV's Interest Expense was $-60 Mil. Its Operating Income was $227 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,254 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*227.449/-59.634
=3.81

* 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.


Koninklijke Vopak NV  (OTCPK:VOPKY) 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 .


Koninklijke Vopak NV Interest Coverage Related Terms

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


Koninklijke Vopak NV Business Description

Address
Westerlaan 10, Rotterdam, NLD, 3016 CK
Koninklijke Vopak NV is a tank storage provider for the oil and chemical industry. The company provides storage facilities and handling services for bulk liquid products and gases, including oil, chemicals, gases, liquefied natural gas, and biofuels. The company organizes itself into six segments, which are principally based on geography: Asia & Middle East, China & North Asia, Netherlands, Singapore, USA & Canada and All other Business Units (consisting of business units Brazil, North Latin America, South Africa and Belgium). The Netherlands contributes the maximum portion of revenue.