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Delta Natural Gas Co (Delta Natural Gas Co) Interest Coverage : 0 (At Loss) (As of Jun. 2017)


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What is Delta Natural Gas Co 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. Delta Natural Gas Co's Operating Income for the three months ended in Jun. 2017 was $-0.26 Mil. Delta Natural Gas Co's Interest Expense for the three months ended in Jun. 2017 was $-0.38 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Delta Natural Gas Co's Interest Coverage or its related term are showing as below:


DGAS's Interest Coverage is not ranked *
in the Utilities - Regulated industry.
Industry Median: 3.73
* 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.


Delta Natural Gas Co Interest Coverage Historical Data

The historical data trend for Delta Natural Gas Co'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.

Delta Natural Gas Co Interest Coverage Chart

Delta Natural Gas Co Annual Data
Trend Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.41 6.43 5.49 4.98 4.92

Delta Natural Gas Co Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 2.57 - 7.28 11.52 -

Competitive Comparison of Delta Natural Gas Co's Interest Coverage

For the Utilities - Regulated Gas subindustry, Delta Natural Gas Co'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.


Delta Natural Gas Co's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Delta Natural Gas Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Delta Natural Gas Co's Interest Coverage falls into.



Delta Natural Gas Co 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.

Delta Natural Gas Co's Interest Coverage for the fiscal year that ended in Jun. 2017 is calculated as

Here, for the fiscal year that ended in Jun. 2017, Delta Natural Gas Co's Interest Expense was $-2.24 Mil. Its Operating Income was $11.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $48.93 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2017 )/Interest Expense (A: Jun. 2017 )
=-1*11.004/-2.235
=4.92

Delta Natural Gas Co's Interest Coverage for the quarter that ended in Jun. 2017 is calculated as

Here, for the three months ended in Jun. 2017, Delta Natural Gas Co's Interest Expense was $-0.38 Mil. Its Operating Income was $-0.26 Mil. And its Long-Term Debt & Capital Lease Obligation was $48.93 Mil.

Delta Natural Gas Co did not have earnings to cover the interest expense.

* 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.


Delta Natural Gas Co  (NAS:DGAS) 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 .


Delta Natural Gas Co Interest Coverage Related Terms

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


Delta Natural Gas Co (Delta Natural Gas Co) Business Description

Traded in Other Exchanges
N/A
Address
Delta Natural Gas Co Inc was incorporated under the laws of the Commonwealth of Kentucky on October 7, 1949. The Company distributes or transports natural gas. Its distribution and transmission systems are located in central and southeastern Kentucky, and it owns and operates an underground natural gas storage field in southeastern Kentucky. The Company transport natural gas to industrial customers who purchase their natural gas in the open market. It also transports natural gas on behalf of local producers and customers not on its distribution system and extract liquids from natural gas in its storage field and on its pipeline systems that are sold at market prices. The Company operates through two segments, a regulated segment and a non-regulated segment. Through regulated segment, the company distributes natural gas to their retail customers in 23 predominantly rural counties. In addition, the regulated segment transports natural gas to large-volume customers on its system who purchase their natural gas in the open market. The regulated segment also transports natural gas on behalf of local producers and other customers not on its distribution system. The non-regulated segment includes three wholly-owned subsidiaries. Two of these subsidiaries, Delta Resources and Delgasco, purchase natural gas in the open market, including natural gas from Kentucky producers. The Company resells this natural gas to industrial customers on its distribution system and to others not on its system. The competes with alternate sources of energy for its regulated distribution customers. These alternate sources include electricity, geo-thermal, coal, oil, propane, wood and solar.

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