Alon USA Energy (Alon USA Energy) Interest Coverage : 1.86 (As of Mar. 2017)

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What is Alon USA Energy 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. Alon USA Energy's Operating Income for the three months ended in Mar. 2017 was $28 Mil. Alon USA Energy's Interest Expense for the three months ended in Mar. 2017 was $-15 Mil. Alon USA Energy's interest coverage for the quarter that ended in Mar. 2017 was 1.86. The higher the ratio, the stronger the company's financial strength is.

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

ALJ's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 6.72
* 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.

Alon USA Energy Interest Coverage Historical Data

The historical data trend for Alon USA Energy'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.

Alon USA Energy Interest Coverage Chart

Alon USA Energy Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Interest Coverage

Get a 7-Day Free Trial

2.08

3.00

5.76

6.80

Alon USA Energy Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Interest Coverage	Get a 7-Day Free Trial															-	-	-	-	1.86

Competitive Comparison of Alon USA Energy's Interest Coverage

For the Oil & Gas Refining & Marketing subindustry, Alon USA Energy'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.

Alon USA Energy's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Alon USA Energy's Interest Coverage falls into.

Alon USA Energy 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.

Alon USA Energy's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, Alon USA Energy's Interest Expense was $-29 Mil. Its Operating Income was $-67 Mil. And its Long-Term Debt & Capital Lease Obligation was $512 Mil.

Alon USA Energy did not have earnings to cover the interest expense.

Alon USA Energy's Interest Coverage for the quarter that ended in Mar. 2017 is calculated as

Here, for the three months ended in Mar. 2017, Alon USA Energy's Interest Expense was $-15 Mil. Its Operating Income was $28 Mil. And its Long-Term Debt & Capital Lease Obligation was $500 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2017 )	/	Interest Expense (Q: Mar. 2017 )
	=	-1	*	28.181	/	-15.117
	=	1.86

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

Alon USA Energy (NYSE:ALJ) 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 .

Alon USA Energy Interest Coverage Related Terms

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

Alon USA Energy (Alon USA Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Alon USA Energy Inc (NYSE:ALJ) » Definitions » Interest Coverage

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Traded in Other Exchanges

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Address

Website

http://www.alonusa.com

Alon USA Energy Inc Inc was incorporated under Delaware law in 2000. The company is an independent refiner and marketer of petroleum products, operates in South Central, Southwestern and Western regions of the United States. Its crude oil refineries are located in Texas, California and Louisiana and have a combined throughput capacity of approximately 214,000 barrels per day. It is also a marketer of asphalt, which it distributes through asphalt terminals located predominately in the Western United States. The company operates in three operating segments; refining and marketing, asphalt, and retail. Its refining and marketing segment includes sour and heavy crude oil refineries that are located in Big Spring, Texas; Paramount, Bakersfield and Long Beach, California; and a light sweet crude oil refinery located in Krotz Springs, Louisiana. It refines crude oil into petroleum products, including gasoline, diesel fuel, jet fuel, petrochemicals, petrochemical feedstocks, asphalt, and other petroleum-based products, which are marketed in the South Central, Southwestern and Western United States. Its Asphalt segment owns or operates approximately 11 asphalt terminals located in Texas ( Big Spring), Washington (Richmond Beach), California (Paramount, Long Beach, Elk Grove, Mojave and Bakersfield), Arizona (Phoenix and Flagstaff) as well as asphalt terminals in which it owns 50% interest located in Fernley, Nevada, and Brownwood, Texas. Its Retail segment operates approximately 306 owned and leased convenience store sites located in Central and West Texas and New Mexico. It also owns 7-Eleven licensee in the United States and have the exclusive right to use the 7-Eleven trade name in substantially all of its existing retail markets and many surrounding areas. It competes in the asphalt market with various refineries including Valero, Tesoro, U.S. Oil, Western, San Joaquin Refining, Ergon and HollyFrontier as well as regional and national asphalt marketing companies that have little or no associated refining operations. The Company's operations is subject to extensive and frequently changing federal, state, regional and local laws, regulations and ordinances relating to the protection of the environment, including those governing emissions or discharges to the air, water, and land, the handling and disposal of solid and hazardous waste and the remediation of contamination.

Executives

Frederec Green	director	7102 COMMERCE WAY, BRENTWOOD TN 37027
Assi Ginzburg	director	7102 COMMERCE WAY, BRENTWOOD TN 37027
Ezra Uzi Yemin	director	7102 COMMERCE WAY, BRENTWOOD TN 37027
Mark D Smith	director	7102 COMMERCE WAY, BRENTWOOD TN 37027
Avigal Soreq	director	7102 COMMERCE WAY, BRENTWOOD TN 37027
Ron W Haddock	director	7616 LBJ FREEWAY, SUITE 300, DALLAS TX 75251
Alan P Moret	officer: Interim CEO	7616 LBJ FREEWAY, SUITE 300, DALLAS TX 75251
Shai Even	officer: Sr. VP and CFO	7616 LBJ FREEWAY, SUITE 300, DALLAS TX 75251
William Jennings Kacal	director	2112 INWOOD DRIVE, HOUSTON TX 77019
Wallace P Eisman	officer: President and CEO	ONE MUSEUM PLACE, 3100 W. 7TH STREET, SUITE 500, FORT WORTH TX 76107
Delek Us Holdings, Inc.	10 percent owner	7102 COMMERCE WAY, BRENTWOOD TN 37027
Yonel Cohen	director	12700 PARK CENTRAL DR STE 1600 DALLAS TX 75251
Joseph Israel	officer: Chief Operating Officer	7616 LBJ FREEWAY, SUITE 300, DALLAS TX 75251
George Tracy Owens	other: Controller	111 CONGRESS AVE., SUITE 2400, AUSTIN TX 78701