Franco-Nevada (Franco-Nevada) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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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. Franco-Nevada's Operating Income for the three months ended in Dec. 2023 was $184 Mil. Franco-Nevada's Interest Expense for the three months ended in Dec. 2023 was $2 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Franco-Nevada Corp has no debt.

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

FNV' s Interest Coverage Range Over the Past 10 Years
Min: 40.14 Med: 146.94 Max: 8190.96
Current: 6537.74

FNV's Interest Coverage is ranked worse than
66.15% of 1344 companies
in the Metals & Mining industry
Industry Median: No Debt vs FNV: 6537.74

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

Franco-Nevada Interest Coverage Historical Data

The historical data trend for Franco-Nevada'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.

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Franco-Nevada Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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53.59

1,479.00

2,637.67

8,200.00

7,377.00

Franco-Nevada Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	239.57	284.43	266.86	-

Competitive Comparison

For the Gold subindustry, Franco-Nevada'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.

Franco-Nevada Interest Coverage Distribution

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

* The bar in red indicates where Franco-Nevada's Interest Coverage falls into.

Franco-Nevada 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.

Franco-Nevada'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, Franco-Nevada's Interest Expense was $-0 Mil. Its Operating Income was $738 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	737.7	/	-0.1
	=	7,377.00

Franco-Nevada's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Franco-Nevada's Interest Expense was $2 Mil. Its Operating Income was $184 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

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

Franco-Nevada (NYSE:FNV) 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 .

Franco-Nevada Interest Coverage Related Terms

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Franco-Nevada (Franco-Nevada) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Franco-Nevada Corp (NYSE:FNV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

FNV:Mexico 3FO:Germany 3FO:Germany FNV:Canada F2NV34:Brazil

Address

199 Bay Street, Suite 2000, P.O. Box 285, Commerce Court Postal Station, Toronto, ON, CAN, M5L 1G9

Website

https://www.franco-nevada.com

Franco-Nevada Corp is a precious-metals-focused royalty and investment company. The company owns a diversified portfolio of precious metals and royalty streams, which is actively managed to generate the bulk of its revenue from gold, silver, and platinum. The company does not operate mines, develop projects, or conduct exploration. Franco-Nevada's short-term financial performance is linked to the price of commodities and the amount of production from its portfolio of producing assets. Its long-term performance is affected by the availability of exploration and development capital. The company holds a portfolio of assets, diversified by commodity, revenue type, and stage of a project, primarily located in the United States, Canada, and Australia.