Fortum Oyj (LTS:0HAH) Interest Coverage : 19.05 (As of Dec. 2023)

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What is Fortum Oyj 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. Fortum Oyj's Operating Income for the three months ended in Dec. 2023 was €381 Mil. Fortum Oyj's Interest Expense for the three months ended in Dec. 2023 was €-20 Mil. Fortum Oyj's interest coverage for the quarter that ended in Dec. 2023 was 19.05. The higher the ratio, the stronger the company's financial strength is.

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

LTS:0HAH' s Interest Coverage Range Over the Past 10 Years
Min: 3.87 Med: 5.85 Max: 7.05
Current: 5.75

LTS:0HAH's Interest Coverage is ranked better than
71.08% of 325 companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.99 vs LTS:0HAH: 5.75

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

Fortum Oyj Interest Coverage Historical Data

The historical data trend for Fortum Oyj'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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Fortum Oyj Interest Coverage Chart

Fortum Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

6.91

6.53

7.05

5.94

5.76

Fortum Oyj 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															7.77	6.95	2.89	3.44	19.05

Competitive Comparison of Fortum Oyj's Interest Coverage

For the Utilities - Renewable subindustry, Fortum Oyj'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.

Fortum Oyj's Interest Coverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Fortum Oyj's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Fortum Oyj's Interest Coverage falls into.

Fortum Oyj 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.

Fortum Oyj'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, Fortum Oyj's Interest Expense was €-268 Mil. Its Operating Income was €1,544 Mil. And its Long-Term Debt & Capital Lease Obligation was €4,573 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1544	/	-268
	=	5.76

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

Here, for the three months ended in Dec. 2023, Fortum Oyj's Interest Expense was €-20 Mil. Its Operating Income was €381 Mil. And its Long-Term Debt & Capital Lease Obligation was €4,573 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	381	/	-20
	=	19.05

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

Fortum Oyj (LTS:0HAH) 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 .

Fortum Oyj Interest Coverage Related Terms

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

Fortum Oyj (LTS:0HAH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Fortum Oyj (LTS:0HAH) » Definitions » Interest Coverage

Traded in Other Exchanges

FOJCY:USA FOJCF:USA FORTUM:Mexico 1FORT:Italy FORTMh:UK FORTUM:Finland FOT0:Germany

Address

Keilalahdentie 2-4, CD Building, P.O. Box 100, Espoo, FIN, FI-00048

Website

https://www.fortum.com

Fortum Oyj is a Finnish energy company that operates power plants, which use renewable energy sources (hydro, nuclear, and solar power) to sell electricity, heat, cooling, and power products and services. The company mainly operates in Nordic and Baltic countries, Russia, Poland, and India. Its main divisions of the company are generation (large-scale power production), city solutions (sustainable energy solutions), Russia (all Russian operations), technology and new ventures (research and development and in-house incubator for startups), mergers and acquisitions, and solar and wind development. The company's operating segments are Generation, City Solutions, Consumer Solutions, Russia, and Other.

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