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. Sunoco LP's
Operating Income
for the
three
months ended in Dec. 2023 was $-42 Mil. Sunoco LP's Interest Expense for the
three
months ended in Dec. 2023 was $-50 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sunoco LP's Interest Coverage or its related term are showing as below:
SUN'
s Interest Coverage Range Over the Past 10 Years
Min: 1.76 Med: 2.96 Max: 4.71
Current: 2.96
SUN's Interest Coverage is ranked worse than 74.71% of 763
companies
in the Oil & Gas industry
Industry Median: 6.67
vs SUN: 2.96
The historical data trend for Sunoco LP'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.
Sunoco LP Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Interest Coverage
3.17
2.46
4.71
3.78
2.96
Sunoco LP Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Interest Coverage
2.22
3.77
2.42
6.11
-
Competitive Comparison
For the Oil & Gas Refining & Marketing subindustry, Sunoco LP'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.
Sunoco LP Interest Coverage Distribution
For the Oil & Gas industry and Energy sector, Sunoco LP's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sunoco LP's Interest Coverage falls into.
Sunoco LP 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:
Sunoco LP did not have earnings to cover the interest expense.
* 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.
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 .
Sunoco LP Interest Coverage Related Terms
Thank you for viewing the detailed overview of Sunoco LP's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Sunoco LP is a Delaware limited partnership formed in June 2012 by Susser Holdings Corporation or SUSS. In September 2012, the Company completed its initial public offering. The Company, along with its wholly owned subsidiary, is an independent motor fuel distributor by gallons in Texas, and among the distributors of Valero and Chevron branded motor fuel in the United States. The Company also receives rental income from real estate that it leases or subleases. SUSS operated approximately 580 retail convenience stores under its proprietary Stripes convenience store brand at year-end, mainly in growing Texas markets. Stripes is an independent chain of convenience stores in Texas based on store count and retail motor fuel volumes sold. Its business is integral to the success of SUSS' retail operations, and SUSS purchases substantially all of its motor fuel from the Company. In addition to distributing motor fuel, it also distributes other petroleum products such as propane and lube oil, and receives rental income from real estate that it leases or subleases. The Company purchases motor fuel mainly from independent refiners and oil companies and distributes it throughout Texas and in Louisiana, New Mexico and Oklahoma. The Company competes mainly with other independent motor fuel distributors. The Company is subject to various federal, state and local environmental laws and regulations, including those relating to underground storage tanks; the release or discharge of hazardous materials into the air, water and soil; the generation, storage, handling, use, transportation and disposal of regulated materials; the exposure of persons to regulated materials; and the remediation of contaminated soil and groundwater.
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