APA Group (APA Group) Interest Coverage

: 4.98 (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. APA Group's Operating Income for the six months ended in Dec. 2023 was $937 Mil. APA Group's Interest Expense for the six months ended in Dec. 2023 was $-188 Mil. APA Group's interest coverage for the quarter that ended in Dec. 2023 was 4.98. 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. APA Group interest coverage is 3.44, which is low.

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

APAJF' s Interest Coverage Range Over the Past 10 Years
Min: 1.34 Med: 1.76 Max: 3.44
Current: 3.44

APAJF's Interest Coverage is ranked worse than
52.73% of 440 companies
in the Utilities - Regulated industry
Industry Median: 3.69 vs APAJF: 3.44

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

APA Group Interest Coverage Historical Data

The historical data trend for APA 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.

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.

APA Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

1.87

1.94

1.34

1.87

1.83

APA Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage																1.96	1.77	2.03	1.62	4.98

Competitive Comparison

For the Utilities - Regulated Gas subindustry, APA 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.

APA Group Interest Coverage Distribution

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

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

APA 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 ⁽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.

APA Group's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, APA Group's Interest Expense was $-320 Mil. Its Operating Income was $585 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,630 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	585.235	/	-320.134
	=	1.83

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

Here, for the six months ended in Dec. 2023, APA Group's Interest Expense was $-188 Mil. Its Operating Income was $937 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,461 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	937.082	/	-188.086
	=	4.98

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

APA Group (OTCPK:APAJF) 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 .

APA Group Interest Coverage Related Terms

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

APA Group (APA Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » APA Group (OTCPK:APAJF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PJZ:Germany APA:Australia

Address

580 George Street, Level 25, Sydney, NSW, AUS, 2000

Website

https://www.apa.com.au

APA Group is Australia's largest gas infrastructure company with an extensive portfolio of transmission pipelines, distribution networks, and storage facilities, and is increasingly investing in renewable energy generation, electricity transmission, and batteries. It is internally managed and has direct operational control over all assets. It owns minority stakes in a few smaller gas infrastructure companies and manages operations for most of these. The stapled securities comprise a unit in Australian Pipeline Trust and in APT Investment Trust.