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SRC Energy (SRC Energy) Interest Coverage : 33.92 (As of Sep. 2019)


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What is SRC Energy 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. SRC Energy's Operating Income for the three months ended in Sep. 2019 was $31.8 Mil. SRC Energy's Interest Expense for the three months ended in Sep. 2019 was $-0.9 Mil. SRC Energy's interest coverage for the quarter that ended in Sep. 2019 was 33.92. The higher the ratio, the stronger the company's financial strength is.

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


SRCI's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 6.72
* Ranked among companies with meaningful Interest Coverage only.

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


SRC Energy Interest Coverage Historical Data

The historical data trend for SRC 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.

* Premium members only.

SRC Energy Interest Coverage Chart

SRC Energy Annual Data
Trend Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Dec16 Dec17 Dec18
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 97.02 22.40 2.23 51.10 80.23

SRC Energy Quarterly Data
Nov14 Feb15 May15 Aug15 Nov15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 88.32 88.59 113.64 75.50 33.92

Competitive Comparison of SRC Energy's Interest Coverage

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


SRC Energy's Interest Coverage Distribution in the Oil & Gas Industry

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

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



SRC 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.

SRC Energy's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, SRC Energy's Interest Expense was $-3.9 Mil. Its Operating Income was $315.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $734.4 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2018 )/Interest Expense (A: Dec. 2018 )
=-1*314.994/-3.926
=80.23

SRC Energy's Interest Coverage for the quarter that ended in Sep. 2019 is calculated as

Here, for the three months ended in Sep. 2019, SRC Energy's Interest Expense was $-0.9 Mil. Its Operating Income was $31.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $705.3 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2019 )/Interest Expense (Q: Sep. 2019 )
=-1*31.781/-0.937
=33.92

* 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.


SRC Energy  (AMEX:SRCI) 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 .


SRC Energy Interest Coverage Related Terms

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


SRC Energy (SRC Energy) Business Description

Traded in Other Exchanges
N/A
Address
1675 Broadway, Suite 2600, Denver, CO, USA, 80202
SRC Energy Inc, formerly Synergy Resources Corp is an oil & natural gas company. It is engaged in the acquisition, development, exploitation, exploration and production of oil and natural gas properties.
Executives
Lynn A Peterson director, officer: President, CEO 1625 BROADWAY, SUITE 250, DENVER CO 80202
James P Henderson officer: EVP & Chief Financial Officer 1625 BROADWAY, SUITE 250, DENVER CO 80202
Paul Korus director C/O CIIRMAREX ENERGY CO, 707 17TH ST. #3300, DENVER CO 80202-3404
Jack N Aydin director 6 DEFOREST CORT, W. NYACK NY 10094
Rick Wilber director
Frank L Jennings officer: Chief Accounting Officer 5455 SPINE ROAD SUITE C, BOULDER CO 80301
Bill M Conrad director 2886 CARRIAGE MANOR POINT, COLO SPGS CO 80906