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WEC Energy Group Interest Coverage

: 3.07 (As of Jun. 2021)
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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. WEC Energy Group's Operating Income for the three months ended in Jun. 2021 was $369 Mil. WEC Energy Group's Interest Expense for the three months ended in Jun. 2021 was $-120 Mil. WEC Energy Group's interest coverage for the quarter that ended in Jun. 2021 was 3.07. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. WEC Energy Group Inc interest coverage is 3.63, which is low.

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

NYSE:WEC' s Interest Coverage Range Over the Past 10 Years
Min: 3.05   Med: 3.9   Max: 4.63
Current: 3.63

3.05
4.63

NYSE:WEC's Interest Coverage is ranked higher than
58% of the 119 Companies
in the Utilities - Regulated industry.

( Industry Median: 2.86 vs. NYSE:WEC: 3.63 )

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


WEC Energy Group Interest Coverage Historical Data

The historical data trend for WEC Energy Group'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.

* Premium members only.

WEC Energy Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.21 4.27 3.30 3.05 3.46

WEC Energy Group Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.72 3.03 3.14 5.27 3.07

Competitive Comparison

For the Utilities - Regulated Electric subindustry, WEC Energy Group'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.

   

WEC Energy Group Interest Coverage Distribution

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

* The bar in red indicates where WEC Energy Group's Interest Coverage falls into.



WEC Energy Group 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.


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

WEC Energy Group's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, WEC Energy Group's Interest Expense was $-494 Mil. Its Operating Income was $1,706 Mil. And its Long-Term Debt & Capital Lease Obligation was $11,728 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*1706.1/-493.7
=3.46

WEC Energy Group's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, WEC Energy Group's Interest Expense was $-120 Mil. Its Operating Income was $369 Mil. And its Long-Term Debt & Capital Lease Obligation was $12,696 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*368.8/-120
=3.07

* 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.

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


WEC Energy Group  (NYSE:WEC) 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 .


WEC Energy Group Interest Coverage Related Terms

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


WEC Energy Group Business Description

WEC Energy Group logo
Industry
Utilities » Utilities - Regulated NAICS : 221118 SIC : 4931
Traded in Other Exchanges
Address
231 West Michigan Street, P.O. Box 1331, Milwaukee, WI, USA, 53201
WEC Energy Group's electric and gas utility businesses serve electric and gas customers in its Illinois, Michigan, Minnesota, and Wisconsin service territories. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 51% electric generation and distribution, 34% gas distribution, 13% electric transmission, and 2% unregulated renewable generation.
Executives
Reese Anthony officer: Vice President and Treasurer 231 WEST MICHIGAN STREET MILWAUKEE WI 53203
Matthews Charles R officer: President & CEO - PGL/NSG 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Kuester Frederick D officer: Sr. Executive Vice Pres. 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Lauber Scott J officer: Sr. EVP and COO 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Liu Xia officer: EVP and CFO ONE ENERGY PLACE PENSACOLA FL 32520
Guc William J officer: Vice President & Controller 130 EAST RANDOLPH DRIVE CHICAGO IL 60601
Green Maria C director C/O INGERSOLL-RAND COMPANY 800-E BEATY STREET DAVIDSON NC 28036
Kelsey Margaret C officer: Executive VP & General Counsel PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: KELSEY MARGARET C a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Krueger Daniel officer: EVP WEC Infrastructure 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Metcalfe Tom officer: Pres. WI Utilities 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Garvin Robert M officer: Exec Vice President - Ext Affs 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Klappa Gale E director, officer: Executive Chairman 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Cunningham Danny L director C/O ACTUANT CORPORATION N86 W12500 WESTBROOK CROSSING MENOMONEE FALLS WI 53051
Stanek Mary Ellen director 14730 WEST JUNEAU BOULEVARD ELM GROVE WI 53122
Culver Curt S director 250 E KILBOURN AVE MILWAUKEE WI 53202

WEC Energy Group Headlines

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