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Magellan Midstream Partners LP Interest Coverage

: 3.71 (As of Jun. 2022)
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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. Magellan Midstream Partners LP's Operating Income for the three months ended in Jun. 2022 was $214 Mil. Magellan Midstream Partners LP's Interest Expense for the three months ended in Jun. 2022 was $-58 Mil. Magellan Midstream Partners LP's interest coverage for the quarter that ended in Jun. 2022 was 3.71. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Magellan Midstream Partners LP interest coverage is 3.92, which is low.

The historical rank and industry rank for Magellan Midstream Partners LP's Interest Coverage or its related term are showing as below:

MMP' s Interest Coverage Range Over the Past 10 Years
Min: 3.82   Med: 4.97   Max: 7.76
Current: 3.92


MMP's Interest Coverage is ranked worse than
71.08% of 733 companies
in the Oil & Gas industry
Industry Median: 9.77 vs MMP: 3.92

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


Magellan Midstream Partners LP Interest Coverage Historical Data

The historical data trend for Magellan Midstream Partners LP'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.

* Premium members only.

Magellan Midstream Partners LP Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.77 4.98 4.96 3.82 4.20

Magellan Midstream Partners LP Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 4.00 4.25 4.46 3.24 3.71

Competitive Comparison

For the Oil & Gas Midstream subindustry, Magellan Midstream Partners LP'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.

   

Magellan Midstream Partners LP Interest Coverage Distribution

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

* The bar in red indicates where Magellan Midstream Partners LP's Interest Coverage falls into.



Magellan Midstream Partners LP 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.


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

Magellan Midstream Partners LP's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Magellan Midstream Partners LP's Interest Expense was $-226 Mil. Its Operating Income was $952 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,236 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*952/-226.4
=4.20

Magellan Midstream Partners LP's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Magellan Midstream Partners LP's Interest Expense was $-58 Mil. Its Operating Income was $214 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,135 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*213.5/-57.5
=3.71

* 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.


Magellan Midstream Partners LP  (NYSE:MMP) 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 .


Magellan Midstream Partners LP Interest Coverage Related Terms

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


Magellan Midstream Partners LP Business Description

Magellan Midstream Partners LP logo
Traded in Other Exchanges
N/A
Address
One Williams Center, P.O. Box 22186, Tulsa, OK, USA, 74121-2186
Magellan Midstream Partners is a master limited partnership that operates pipelines and storage terminals in the Central and Eastern United States. Its assets transport, store, and distribute refined petroleum products and crude and earn a fee-based stream of cash flows. Assets include the country's longest petroleum pipeline network and several crude oil pipelines. Refined products make about 70% of operating margin, with the remainder mainly crude-oil pipelines.
Executives
Somasundaram Sivasankaran director C/O APERGY CORPORATION 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9 THE WOODLANDS TX 77381
Roles Mark B officer: Senior Vice President ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172
Pearson Michael C officer: Senior Vice President ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172
Joung Chansoo director C/O WARBURG PINCUS LLC 450 LEXINGTON AVENUE NEW YORK NY 10017
Holman Jeffrey L officer: Senior Vice President & CFO ONE WILLIAMS CENTER TULSA OK 74172
Little Melanie A officer: Senior Vice President ONE WILLIAMS CENTER, SUITE 2800 TULSA OK 74172
Guay Edward J director ONE WILLIAMS CENTER, SUITE 2800 TULSA OK 74172
Gobillot Lori director 5103 CITY WEST BLVD. 4TH FLOOR HOUSTON TX 77042
Aaronson Michael officer: Senior Vice President 16666 NORTHCHASE DRIVE HOUSTON TX 77060
Milford Aaron L officer: Senior Vice President & CFO ONE WILLIAMS CENTER TULSA OK 74172
Methvin Stacy P. director 777 HIDDEN RIDGE IRVING TX 75038
Barnes Robert L officer: Senior Vice President ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172
Osborne Michael P officer: Senior VP & CFO ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172
May Douglas J officer: Senior Vice President ONE WILLIAMS CENTER, SUITE 4100 TULSA OK 74172
Davied Larry J officer: Senior Vice President ONE WILLIAMS CENTER SUITE 2800 TULSA OK 74172

Magellan Midstream Partners LP Headlines

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