Terna SpA (STU:UEI) Interest Coverage : 15.42 (As of Sep. 2023)

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What is Terna SpA 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. Terna SpA's Operating Income for the three months ended in Sep. 2023 was €341 Mil. Terna SpA's Interest Expense for the three months ended in Sep. 2023 was €-22 Mil. Terna SpA's interest coverage for the quarter that ended in Sep. 2023 was 15.42. The higher the ratio, the stronger the company's financial strength is.

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

STU:UEI' s Interest Coverage Range Over the Past 10 Years
Min: 6.15 Med: 11.78 Max: 13.71
Current: 11.48

STU:UEI's Interest Coverage is ranked better than
77.38% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs STU:UEI: 11.48

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

Terna SpA Interest Coverage Historical Data

The historical data trend for Terna SpA'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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Terna SpA Interest Coverage Chart

Terna SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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13.23

13.71

12.46

11.49

11.57

Terna SpA 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															7.79	9.76	11.65	15.42	10.48

Competitive Comparison of Terna SpA's Interest Coverage

For the Utilities - Regulated Electric subindustry, Terna SpA'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.

Terna SpA's Interest Coverage Distribution in the Utilities - Regulated Industry

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

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

Terna SpA 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.

Terna SpA's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Terna SpA's Interest Expense was €-113 Mil. Its Operating Income was €1,293 Mil. And its Long-Term Debt & Capital Lease Obligation was €8,417 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	1292.9	/	-112.5
	=	11.49

Terna SpA's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Terna SpA's Interest Expense was €-22 Mil. Its Operating Income was €341 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,721 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	340.7	/	-22.1
	=	15.42

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

Terna SpA (STU:UEI) 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 .

Terna SpA Interest Coverage Related Terms

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

Terna SpA (STU:UEI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Terna SpA (STU:UEI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TEZNY:USA TERRF:USA TRN:Italy TRNm:UK 0LBM:UK UEI:Germany

Address

Viale Egidio Galbani, 70, Rome, ITA, 00156

Website

https://www.terna.it

Terna SpA is an electricity transmission system operator that owns virtually all of the Italian National Transmission Grid. With a monopoly under an Italian government license, Terna transmits and dispatches electricity throughout the country. It is also responsible for the planning, construction, and maintenance of the nation's electrical grid. Terna segments its operations into its Regulated Activities, Non-Regulated Activities, and International Activities. The company generates the vast majority of its revenue from charging transmission fees as a part of its Regulated Activities. Under its Non-Regulated Activities, Terna mainly produces and sells electricity transformers. The company has also made efforts to expand its operations into Italy's neighboring countries and North Africa.

Terna SpA (STU:UEI) Headlines

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