Spire (SR) Interest Coverage

: 2.75 (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. Spire's Operating Income for the three months ended in Dec. 2023 was $139 Mil. Spire's Interest Expense for the three months ended in Dec. 2023 was $-51 Mil. Spire's interest coverage for the quarter that ended in Dec. 2023 was 2.75. 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. Spire Inc interest coverage is 2.12, which is low.

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

SR' s Interest Coverage Range Over the Past 10 Years
Min: 2.12 Med: 3.51 Max: 4.22
Current: 2.12

SR's Interest Coverage is ranked worse than
77.27% of 440 companies
in the Utilities - Regulated industry
Industry Median: 3.665 vs SR: 2.12

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

Spire Interest Coverage Historical Data

The historical data trend for Spire'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.

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Spire Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

2.90

3.36

4.22

3.41

2.25

Spire Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																3.44	5.51	0.26	-	2.75

Competitive Comparison

For the Utilities - Regulated Gas subindustry, Spire'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.

Spire Interest Coverage Distribution

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

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

Spire 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.

Spire's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Spire's Interest Expense was $-186 Mil. Its Operating Income was $419 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,554 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	418.6	/	-185.7
	=	2.25

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

Here, for the three months ended in Dec. 2023, Spire's Interest Expense was $-51 Mil. Its Operating Income was $139 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,248 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	139.2	/	-50.6
	=	2.75

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

Spire (NYSE:SR) 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 .

Spire Interest Coverage Related Terms

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

Spire (SR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Spire Inc (NYSE:SR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SRCU:USA SRpA.PFD:USA LGR:Germany

Address

700 Market Street, Saint Louis, MO, USA, 63101

Website

https://www.spireenergy.com

Spire Inc is a public utility holding company with three reportable business segments: Gas Utility , Gas Marketing and Midstream. The Gas Utility segment includes the regulated operations of Laclede Gas, Alabama Gas Corporation (Alagasco), and EnergySouth Inc. The Utilities businesses operations include the purchase, retail, distribution, and sale of natural gas in Missouri, Alabama, and Mississippi. The Gas Utility segment generates a majority of the company's revenue but is subject to seasonal fluctuations. The Gas Marketing segment includes Laclede Energy Resources, Inc, whose operations include the marketing of natural gas and related activities on a non-regulated basis and the Midstream segment includes transportation and storage of natural gas.

Executives

Paul D Koonce	director	P O BOX 26532, RICHMOND VA 23261
Adam W. Woodard	officer: Treasurer	700 MARKET STREET, ST. LOUIS MO 63101
Steven P Rasche	officer: Executive Vice President	700 MARKET STREET, ST. LOUIS MO 63101
Stephen M Mills	officer: Senior Vice President	700 MARKET STREET, ST. LOUIS MO 63101
Vincent J Ferrari	director	12555 MANCHESTER ROAD, DES PERES MO 63131
Brenda D Newberry	director	700 MARKET STREET, ST. LOUIS MO 63101
Carrie J Hightman	director	C/O NISOURCE INC., 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Stupp John P Jr	director	STUPP JOHN P JR, #18 ST. ANDREWS DR., ST LOUIS MO 63124
Joseph B. Hampton	officer: President, AL & MS	700 MARKET STREET, ST. LOUIS MO 63101
Scott B. Carter	officer: SVP, COO of Distribution Ops	700 MARKET STREET, ST. LOUIS MO 63101
Stephen S Schwartz	director	46897 BAYSIDE PARKWAY, FREMONT CA 94538
Rob L. Jones	director	555 EAST AIRTEX DRIVE, HOUSTON TX 77073
Edward L Glotzbach	director	C/O VISUAL NETWORKS INC, 2092 GAITHER ROAD, ROCKVILLE MD 20850
Mark A Borer	director
Van Lokeren Mary Ann	director