Babcock & Wilcox Enterprises (Babcock & Wilcox Enterprises) Interest Coverage

: 0.18 (As of Dec. 2023)

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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. Babcock & Wilcox Enterprises's Operating Income for the three months ended in Dec. 2023 was $2 Mil. Babcock & Wilcox Enterprises's Interest Expense for the three months ended in Dec. 2023 was $-13 Mil. Babcock & Wilcox Enterprises's interest coverage for the quarter that ended in Dec. 2023 was 0.18. 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. Babcock & Wilcox Enterprises Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Babcock & Wilcox Enterprises's Interest Coverage or its related term are showing as below:

BW' s Interest Coverage Range Over the Past 10 Years
Min: 0.16 Med: 0.37 Max: 42.79
Current: 0.38

BW's Interest Coverage is ranked worse than
98.31% of 2306 companies
in the Industrial Products industry
Industry Median: 13.46 vs BW: 0.38

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

Babcock & Wilcox Enterprises Interest Coverage Historical Data

The historical data trend for Babcock & Wilcox Enterprises'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.

Babcock & Wilcox Enterprises Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.16

0.26

0.48

Babcock & Wilcox Enterprises Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																0.40	0.21	0.66	0.51	0.18

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Babcock & Wilcox Enterprises'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.

Babcock & Wilcox Enterprises Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, Babcock & Wilcox Enterprises's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Babcock & Wilcox Enterprises's Interest Coverage falls into.

Babcock & Wilcox Enterprises 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.

Babcock & Wilcox Enterprises's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Babcock & Wilcox Enterprises's Interest Expense was $-50 Mil. Its Operating Income was $24 Mil. And its Long-Term Debt & Capital Lease Obligation was $425 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	24.178	/	-49.895
	=	0.48

Babcock & Wilcox Enterprises's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Babcock & Wilcox Enterprises's Interest Expense was $-13 Mil. Its Operating Income was $2 Mil. And its Long-Term Debt & Capital Lease Obligation was $425 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2.284	/	-12.647
	=	0.18

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

Babcock & Wilcox Enterprises (NYSE:BW) 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 .

Babcock & Wilcox Enterprises Interest Coverage Related Terms

Thank you for viewing the detailed overview of Babcock & Wilcox Enterprises's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Babcock & Wilcox Enterprises (Babcock & Wilcox Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Babcock & Wilcox Enterprises Inc (NYSE:BW) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BWpA.PFD:USA UBW1:Germany

Address

1200 East Market Street, Suite 650, Akron, OH, USA, 44305

Website

https://www.babcock.com

Babcock & Wilcox Enterprises is a power generation equipment supplier and servicing company that operates in three segments: B&W Renewable, B&W Environmental, and B&W Thermal. B&W Thermal, which focuses on steam generation products and solutions for plants in the power generation, oil and gas, and industrial sectors, generates the majority of the company's revenue. B&W Renewable focuses on sustainable power and heat generation while B&W Environmental focuses on emissions control. The company's customer base spans the industrial, electrical utility, and municipal industries located predominantly in the United States, Canada, Denmark, and the United Kingdom. Business in the U.S. contributes the vast majority of its revenue.

Executives

Henry E Bartoli	director, officer: Chief Strategy Officer	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Christopher S Riker	officer: Senior Vice President	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Louis Jr Salamone	officer: Chief Financial Officer	7925 JONES BRANCH DRIVE, MCLEAN VA 22102
Joseph A Tato	director	580 INDIAN HARBOR ROAD, VERO BEACH FL 32963
B. Riley Financial, Inc.	10 percent owner	11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Kenneth M Young	officer: Chief Executive Officer	C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367
Alan B Howe	director	1155 KAS DRIVE SUITE 100, RICHARDSON TX 75081
John J Dziewisz	officer: SVP & Corp. Secy.	1200 E. MARKET STREET, SUITE 650, SUITE 650, AKRON OH 44305
Joseph T Buckler	officer: Senior Vice President	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Jimmy B Morgan	officer: SVP, Babcock & Wilcox	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Philip D Moeller	director	2306 CHAIN BRIDGE ROAD, NW, WASHINGTON DC 20016
Rebecca L Stahl	director	2106 SOUTH BAY LANE, RESTON VA 20191
Brf Investments, Llc	10 percent owner	11100 SANTA MONICA BLVD., SUITE 800, LOS ANGELES CA 90025
Brc Partners Opportunity Fund, Lp	10 percent owner	11100 SANTA MONICA BLVD. SUITE 800, LOS ANGELES CA 90025
Vintage Capital Management Llc	10 percent owner	4705 S APOPKA VINELAND ROAD SUITE 210, ORLANDO FL 32819