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Gold Fields (NYSE:GFI) Interest Coverage

: 22.57 (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. Gold Fields's Operating Income for the six months ended in Dec. 2023 was $686 Mil. Gold Fields's Interest Expense for the six months ended in Dec. 2023 was $-30 Mil. Gold Fields's interest coverage for the quarter that ended in Dec. 2023 was 22.57. The higher the ratio, the stronger the company's financial strength is.

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

GFI' s Interest Coverage Range Over the Past 10 Years
Min: 3.8   Med: 6.71   Max: 23.26
Current: 23.26


GFI's Interest Coverage is ranked worse than
74.2% of 1341 companies
in the Metals & Mining industry
Industry Median: No Debt vs GFI: 23.26

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


Gold Fields Interest Coverage Historical Data

The historical data trend for Gold Fields'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.

Gold Fields Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.31 11.78 15.52 19.81 23.26

Gold Fields Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 12.85 21.68 17.74 23.91 22.57

Competitive Comparison

For the Gold subindustry, Gold Fields'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.


Gold Fields Interest Coverage Distribution

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

* The bar in red indicates where Gold Fields's Interest Coverage falls into.



Gold Fields 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.

Gold Fields'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, Gold Fields's Interest Expense was $-63 Mil. Its Operating Income was $1,463 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,013 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1463/-62.9
=23.26

Gold Fields's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Gold Fields's Interest Expense was $-30 Mil. Its Operating Income was $686 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,013 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*686/-30.4
=22.57

* 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.


Gold Fields  (NYSE:GFI) 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 .


Gold Fields Interest Coverage Related Terms

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


Gold Fields (NYSE:GFI) Business Description

Address
150 Helen Road, Sandown, Sandton, Johannesburg, GT, ZAF, 2196
Gold Fields Ltd is a producer of gold and is a holder of gold reserves and resources in South Africa, Ghana, Australia and Peru. In Peru, the company also produces copper. The company is primarily involved in underground and surface gold and surface copper mining and silver and related activities, including exploration, extraction, processing and smelting. It conducts underground and surface mining operations at St. Ives, underground-only operations at Agnew, Granny Smith and South Deep and surface-only open pit mining at Damang, Tarkwa and Cerro Corona. The company's revenues are derived from the sale of gold that it produces.