RGC Resources (RGC Resources) Interest Coverage : 4.07 (As of Dec. 2023)

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What is RGC Resources 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. RGC Resources's Operating Income for the three months ended in Dec. 2023 was $6.65 Mil. RGC Resources's Interest Expense for the three months ended in Dec. 2023 was $-1.64 Mil. RGC Resources's interest coverage for the quarter that ended in Dec. 2023 was 4.07. The higher the ratio, the stronger the company's financial strength is.

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

RGCO' s Interest Coverage Range Over the Past 10 Years
Min: 3.05 Med: 4.16 Max: 6.85
Current: 3.19

RGCO's Interest Coverage is ranked worse than
55.88% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs RGCO: 3.19

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

RGC Resources Interest Coverage Historical Data

The historical data trend for RGC Resources'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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RGC Resources Interest Coverage Chart

RGC Resources Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

Get a 7-Day Free Trial

3.20

3.05

3.65

3.32

3.15

RGC Resources Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.05	6.87	1.26	0.52	4.07

Competitive Comparison of RGC Resources's Interest Coverage

For the Utilities - Regulated Gas subindustry, RGC Resources'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.

RGC Resources's Interest Coverage Distribution in the Utilities - Regulated Industry

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

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

RGC Resources 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.

RGC Resources'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, RGC Resources's Interest Expense was $-5.62 Mil. Its Operating Income was $17.68 Mil. And its Long-Term Debt & Capital Lease Obligation was $125.85 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	17.678	/	-5.619
	=	3.15

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

Here, for the three months ended in Dec. 2023, RGC Resources's Interest Expense was $-1.64 Mil. Its Operating Income was $6.65 Mil. And its Long-Term Debt & Capital Lease Obligation was $102.46 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	6.652	/	-1.636
	=	4.07

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

RGC Resources (NAS:RGCO) 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 .

RGC Resources Interest Coverage Related Terms

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

RGC Resources (RGC Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » RGC Resources Inc (NAS:RGCO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

519 Kimball Avenue North East, Roanoke, VA, USA, 24016

Website

https://www.rgcresources.com

RGC Resources Inc is involved in the business of distribution and sale of natural gas to residential, commercial, and industrial customers within its service territory in Roanoke, Virginia and its surrounding localities as well as it also provides certain non-regulated services. The company relies on multiple interstate pipelines to transport natural gas. The company operates in three segments: Gas Utility, which is the key revenue generator; Investment in Affiliates this segment reflects the income generated through the activities of the Company's investment in MVP and Southgate projects and Parent & Other include the unregulated activities of the Company as well as certain corporate eliminations.

Executives

Christen Brooke Miles	officer: VP, Human Resources	P.O. BOX 13007, ROANOKE VA 24030
Lawrence T. Oliver	officer: VP, Interim CFO, Sec. & Treas.	P. O. BOX 13007, ROANOKE VA 24030
Robert B Johnston	director
Jason A. Field	officer: VP, Treasurer & CFO	P. O. BOX 13007, ROANOKE VA 24030
Williamson John B Iii	director, officer: Chairman, President & CEO	PO BOX 13007, ROANOKE VA 24030
Paul W Nester	officer: VP, Treasurer & CFO	P.O. BOX 13007, ROANOKE VA 24030
Anita G Zucker	10 percent owner	4838 JENKINS AVE, N CHARLESTON SC 29405
Elizabeth A Mcclanahan	director	P. O. BOX 13007, ROANOKE VA 24030
Jacqueline L. Archer	director	P. O. BOX 13007, ROANOKE VA 24030
Burton Randall P. Ii	other: Former VP, CFO, Sec. & Treas.	P. O. BOX 13007, ROANOKE VA 24030
Shockley C James Jr	officer: VP & COO	P.O. BOX 13007, ROANOKE VA 24030
Wells Robert L Ii	officer: VP, CIO, Asst. Sec. & Treas.	P.O. BOX 13007, ROANOKE VA 24030
Nancy H Agee	director	PO BOX 13007, ROANOKE VA 24030
D Orazio John S	officer: VP & COO Roanoke Gas Co (sub)	PO BOX 13007, ROANOKE VA 24030
Smoot Raymond D Jr	director	P. O. BOX 13007, ROANOKE VA 24030