TerraForm Power (TerraForm Power) Interest Coverage : 0.68 (As of Jun. 2020)

TerraForm Power Interest Coverage Chart

TerraForm Power Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
Interest Coverage	Get a 7-Day Free Trial															0.78	0.46	-	0.39	0.68

Competitive Comparison of TerraForm Power's Interest Coverage

For the Utilities - Independent Power Producers subindustry, TerraForm Power'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.

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

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

* The bar in red indicates where TerraForm Power's Interest Coverage falls into.

TerraForm Power 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

TerraForm Power's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, TerraForm Power's Interest Expense was $-298.1 Mil. Its Operating Income was $118.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,066.3 Mil.

TerraForm Power's Interest Coverage for the quarter that ended in Jun. 2020 is calculated as

Here, for the three months ended in Jun. 2020, TerraForm Power's Interest Expense was $-85.3 Mil. Its Operating Income was $58.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,548.5 Mil.

* 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.

TerraForm Power  (NAS:TERP) 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 .

TerraForm Power Interest Coverage Related Terms

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TerraForm Power (TerraForm Power) Business Description