Northern Tier Energy LP (Northern Tier Energy LP) Interest Coverage : 3.35 (As of Mar. 2016)

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What is Northern Tier Energy LP 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. Northern Tier Energy LP's Operating Income for the three months ended in Mar. 2016 was $22 Mil. Northern Tier Energy LP's Interest Expense for the three months ended in Mar. 2016 was $-7 Mil. Northern Tier Energy LP's interest coverage for the quarter that ended in Mar. 2016 was 3.35. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Northern Tier Energy LP's Interest Coverage or its related term are showing as below:

NTI's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 6.74
* 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.

Northern Tier Energy LP Interest Coverage Historical Data

The historical data trend for Northern Tier Energy 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.

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.

Northern Tier Energy LP Interest Coverage Chart

Northern Tier Energy LP Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

10.04

13.53

8.87

10.35

12.83

Northern Tier Energy LP Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Interest Coverage	Get a 7-Day Free Trial															15.93	18.52	15.28	-	3.35

Competitive Comparison of Northern Tier Energy LP's Interest Coverage

For the Oil & Gas Refining & Marketing subindustry, Northern Tier Energy 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.

Northern Tier Energy LP's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Northern Tier Energy LP's Interest Coverage falls into.

Northern Tier Energy 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 ⁽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.

Northern Tier Energy LP's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Northern Tier Energy LP's Interest Expense was $-29 Mil. Its Operating Income was $368 Mil. And its Long-Term Debt & Capital Lease Obligation was $353 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	368.1	/	-28.7
	=	12.83

Northern Tier Energy LP's Interest Coverage for the quarter that ended in Mar. 2016 is calculated as

Here, for the three months ended in Mar. 2016, Northern Tier Energy LP's Interest Expense was $-7 Mil. Its Operating Income was $22 Mil. And its Long-Term Debt & Capital Lease Obligation was $376 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2016 )	/	Interest Expense (Q: Mar. 2016 )
	=	-1	*	21.8	/	-6.5
	=	3.35

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

Northern Tier Energy LP (NYSE:NTI) 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 .

Northern Tier Energy LP Interest Coverage Related Terms

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

Northern Tier Energy LP (Northern Tier Energy LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Northern Tier Energy LP (NYSE:NTI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.ntenergy.com

Northern Tier Energy LP was incorporated on October 21, 2011. Its an independent downstream energy limited partnership with refining, retail and pipeline operations that serves the PADD II region of the United States. The Company operate its assets in two business segments: the refining business and the retail business. Its refining segment consists of an 89,500 barrels per calendar day (96,500 barrels per stream day) refinery located in St. Paul Park, Minnesota. Its refinery's complexity allows to process a variety of light, heavy, sweet and sour crudes into higher value refined products. Its retail segment operated 164 convenience stores under the SuperAmerica brand and also supported 75 franchised convenience stores, which are also operated under the SuperAmerica brand. These convenience stores are located in Minnesota and Wisconsin and sell various grades of gasoline and diesel, tobacco products and immediately consumable items such as beverages, prepared food and a large variety of snacks and prepackaged items. It also own and operate SuperMom's Bakery, which prepares and distributes baked goods and other prepared food items for sale in its company-operated and franchised convenience stores and other third party locations. Crude oil is the principal raw material for the Company and the majority of the crude oil processed is delivered to the refinery through a pipeline that is owned by MPL, a related party. With respect to its wholesale gasoline and distillate sales and marketing, it compete directly with Koch Industries' Flint Hills Resources Refinery in Pine Bend, Minnesota, as well as the other refiners in the PADD II region and, to a lesser extent, U.S. and foreign refiners. Its retail competitors include Holiday and Kwik Trip.

Executives

David L Lamp	director, officer: President and CEO	C/O CVR ENERGY, INC., 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND TX 77479
Thomas W Hofmann	director	FIVE RADNOR CORPORATE CENTER, SUITE 500, RADNOR PA 19087
Scott D Weaver	director	C/O WESTERN REFINING, INC., 6500 TROWBRIDGE DRIVE, EL PASO TX 79905
Melissa M Buhrig	officer: Exec VP, General Counsel & Sec	C/O CVR ENERGY, INC., 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND TX 77479
Dan F Smith	director	1221 MCKINNEY STREET, SUITE 700, HOUSTON TX 77010
Western Refining, Inc.	director, 10 percent owner	539 SOUTH MAIN STREET, FINDLAY OH 45840-3229
Karen Berriman Davis	officer: Executive VP and CFO	123 WEST MILLS AVENUE, SUITE 200, EL PASO TX 79901
Scott D Josey	director	ONE BRIARLAKE PLAZA, SUITE 2000, 2000 WEST SAM HOUSTON PARKWAY SOUTH, HOUSTON TX 77042
David Bonderman	other: Former 10% Owner and Director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
James G Coulter	other: Former 10% Owner and Director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Bernard W Aronson	director
Tpg Advisors Vi, Inc.	other: Former 10% Owner and Director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Tpg Group Holdings (sbs) Advisors, Inc.	director, 10 percent owner	C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Michael G. Macdougall	director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Eric Liaw	director	C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102

Northern Tier Energy LP (Northern Tier Energy LP) Headlines

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