Hawaiian Electric Industries (Hawaiian Electric Industries) Interest Coverage

: 2.77 (As of Dec. 2023)

View and export this data going back to 1983. Start your Free Trial

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. Hawaiian Electric Industries's Operating Income for the three months ended in Dec. 2023 was $91 Mil. Hawaiian Electric Industries's Interest Expense for the three months ended in Dec. 2023 was $-33 Mil. Hawaiian Electric Industries's interest coverage for the quarter that ended in Dec. 2023 was 2.77. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Hawaiian Electric Industries's Interest Coverage or its related term are showing as below:

HE' s Interest Coverage Range Over the Past 10 Years
Min: 2.93 Med: 4.14 Max: 4.9
Current: 2.93

HE's Interest Coverage is ranked worse than
59.28% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs HE: 2.93

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

Hawaiian Electric Industries Interest Coverage Historical Data

The historical data trend for Hawaiian Electric Industries'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.

Hawaiian Electric Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.03

3.63

4.24

3.81

2.93

Hawaiian Electric Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																3.52	3.38	3.26	2.40	2.77

Competitive Comparison

For the Utilities - Regulated Electric subindustry, Hawaiian Electric Industries'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.

Hawaiian Electric Industries Interest Coverage Distribution

For the Utilities - Regulated industry and Utilities sector, Hawaiian Electric Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hawaiian Electric Industries's Interest Coverage falls into.

Hawaiian Electric Industries 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.

Hawaiian Electric Industries'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, Hawaiian Electric Industries's Interest Expense was $-120 Mil. Its Operating Income was $353 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,035 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	352.604	/	-120.331
	=	2.93

Hawaiian Electric Industries's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Hawaiian Electric Industries's Interest Expense was $-33 Mil. Its Operating Income was $91 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,035 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	90.996	/	-32.87
	=	2.77

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

Hawaiian Electric Industries (NYSE:HE) 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 .

Hawaiian Electric Industries Interest Coverage Related Terms

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

Hawaiian Electric Industries (Hawaiian Electric Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Hawaiian Electric Industries Inc (NYSE:HE) » Definitions » Interest Coverage

Comparable Companies

GNE VIA SUME MGEE PNM POR IDA NEE SO DUK LSE:NG. AEP PCG D BOM:532555 EXC PEG ED BOM:532898 XEL

Traded in Other Exchanges

HWI:Germany HWI:Germany

Address

1001 Bishop Street, Suite 2900, Honolulu, HI, USA, 96813

Website

https://www.hei.com

Hawaiian Electric Industries is the parent company of three Hawaii-based regulated utilities and Hawaii's American Savings Bank. The utilities provide electricity on the five islands of Oahu, Hawaii, Maui, Molokai, and Lanai. Nearly 40% of electricity in its service territory comes from renewable energy; this portion is growing rapidly as the state has set a goal of 100% by 2045.

Executives

Scott Deghetto	officer: EVP, CFO & Treasurer	P.O. BOX 730, HONOLULU HI 96808
Bruce Tamashiro	officer: Controller, PAO	P.O. BOX 730, HONOLULU HI 96808
Keith P Russell	director	200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618
Yoko Otani	director	P.O. BOX 730, HONOLULU HI 96808
Michael J. Kennedy	director	P.O. BOX 730, HONOLULU HI 96808
Elisia Flores	director	PO BOX 730, HONOLULU HI 96808
Gregory C Hazelton	officer: SVP - Finance	220 NW SECOND AVENUE, PORTLAND OR 97209
Lau Constance H	director, officer: President	C/O HAWAIIAN ELECTRIC INDUSTRIES, INC., P O BOX 730, HONOLULIU HI 96808
Ann Teranishi	officer: Pres & CEO, Amer Savings Bank	P.O. BOX 730, HONOLULU HI 96813
Kimura Shelee M.t.	officer: Pres & CEO, Hawn Electric Co.	C/O P.O. BOX 730, HONOLULU HI 96808
Valueact Spring Master Fund, L.p.	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Valueact Spring Master Fund A, L.p.	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, FOURTH FLOOR, SAN FRANCISCO CA 94129
Richard F Wacker	officer: Pres & CEO, Amer Savings Bank
Seu Scott W.h.	officer: Pres & CEO, Hawn Electric	C/O P.O. BOX 730, HONOLULU HI 96808
Valueact Capital Management, Llc	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129