New Hope (New Hope) Interest Coverage : 57.33 (As of Jan. 2024)

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What is New Hope Interest Coverage?

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. New Hope's Operating Income for the six months ended in Jan. 2024 was $214 Mil. New Hope's Interest Expense for the six months ended in Jan. 2024 was $-4 Mil. New Hope's interest coverage for the quarter that ended in Jan. 2024 was 57.33. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. New Hope Corp Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

NHPEF' s Interest Coverage Range Over the Past 10 Years
Min: 11.68 Med: 140.12 Max: No Debt
Current: 107.04

NHPEF's Interest Coverage is ranked better than
67.97% of 128 companies
in the Other Energy Sources industry
Industry Median: 22.565 vs NHPEF: 107.04

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

New Hope Interest Coverage Historical Data

The historical data trend for New Hope'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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New Hope Interest Coverage Chart

New Hope Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Interest Coverage

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11.68

65.45

140.11

New Hope Semi-Annual Data
	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24
Interest Coverage	Get a 7-Day Free Trial															32.46	118.89	113.05	260.05	57.33

Competitive Comparison of New Hope's Interest Coverage

For the Thermal Coal subindustry, New Hope'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.

New Hope's Interest Coverage Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, New Hope's Interest Coverage distribution charts can be found below:

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

New Hope 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.

New Hope's Interest Coverage for the fiscal year that ended in Jul. 2023 is calculated as

Here, for the fiscal year that ended in Jul. 2023, New Hope's Interest Expense was $-7 Mil. Its Operating Income was $937 Mil. And its Long-Term Debt & Capital Lease Obligation was $51 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jul. 2023 )	/	Interest Expense (A: Jul. 2023 )
	=	-1	*	937.064	/	-6.688
	=	140.11

New Hope's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the six months ended in Jan. 2024, New Hope's Interest Expense was $-4 Mil. Its Operating Income was $214 Mil. And its Long-Term Debt & Capital Lease Obligation was $51 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	213.856	/	-3.73
	=	57.33

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

New Hope (OTCPK:NHPEF) 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 .

New Hope Interest Coverage Related Terms

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

New Hope (New Hope) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » New Hope Corp Ltd (OTCPK:NHPEF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

OD8:Germany NHC:Australia

Address

175 Eagle Street, Level 16, Brisbane, QLD, AUS, 4000

Website

https://www.newhopegroup.com.au

New Hope Corporation is an Australian thermal coal miner. It has two operating mines: the 100%-owned New Acland coal mine in Queensland and its 80%-owned Bengalla coal mine in New South Wales. The company should produce around 13 million metric tons of equity salable thermal coal annually from fiscal 2027, up from around 8 million in fiscal 2023, driven by the construction and ramp up of New Acland Stage 3. The vast majority of New Hope's production is sold into seaborne thermal coal export markets. Reserves at New Acland and Bengalla are sufficient to support multidecade mine lives. New Hope also has significant undeveloped coal resources in Queensland, as well as a 15% holding in the Malabar-Maxwell metallurgical coal mine, which began production in 2023.

New Hope (New Hope) Headlines

From GuruFocus

New Hope Corp Ltd's Dividend Analysis

By GuruFocus Research • 10-23-2023