Capital Power (TSX:CPX.PR.I.PFD) Interest Coverage : 2.98 (As of Dec. 2023)

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What is Capital Power 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. Capital Power's Operating Income for the three months ended in Dec. 2023 was C$137.00 Mil. Capital Power's Interest Expense for the three months ended in Dec. 2023 was C$-46.00 Mil. Capital Power's interest coverage for the quarter that ended in Dec. 2023 was 2.98. The higher the ratio, the stronger the company's financial strength is.

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

TSX:CPX.PR.I.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 2.21 Med: 2.83 Max: 6.38
Current: 6.38

TSX:CPX.PR.I.PFD's Interest Coverage is ranked better than
72.92% of 325 companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.98 vs TSX:CPX.PR.I.PFD: 6.38

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

Capital Power Interest Coverage Historical Data

The historical data trend for Capital Power'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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Capital Power Interest Coverage Chart

Capital Power Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

4.66

2.61

2.41

2.21

6.38

Capital Power 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															-	8.40	3.65	10.74	2.98

Competitive Comparison of Capital Power's Interest Coverage

For the Utilities - Independent Power Producers subindustry, Capital Power'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.

Capital Power's Interest Coverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Capital Power's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Capital Power's Interest Coverage falls into.

Capital Power 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.

Capital Power's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Capital Power's Interest Expense was C$-163.00 Mil. Its Operating Income was C$1,040.00 Mil. And its Long-Term Debt & Capital Lease Obligation was C$4,266.00 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1040	/	-163
	=	6.38

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

Here, for the three months ended in Dec. 2023, Capital Power's Interest Expense was C$-46.00 Mil. Its Operating Income was C$137.00 Mil. And its Long-Term Debt & Capital Lease Obligation was C$4,266.00 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	137	/	-46
	=	2.98

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

Capital Power (TSX:CPX.PR.I.PFD) 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 .

Capital Power Interest Coverage Related Terms

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

Capital Power (TSX:CPX.PR.I.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Capital Power Corp (TSX:CPX.PR.I.PFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CPWPF.PFD:USA CPRHF.PFD:USA CPXWF:USA 2CP:Germany CPX.PR.K.PFD:Canada CPX.PR.E.PFD:Canada CPX.PR.C.PFD:Canada CPX.PR.A.PFD:Canada CPX:Canada

Address

10423 - 101 Street NW, Suite 1200, Edmonton, AB, CAN, T5H 0E9

Website

https://www.capitalpower.com

Capital Power Corp is a North American power producer whose principal activities are developing, acquiring, and operating power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities. These are located throughout Western and Central Canada and the U.S. Capital Power's natural gas and coal facilities, specifically its Genesee and Shepard sites, account for most of its electric capacity and cash flow production. The company generates the vast majority of its revenue from sales of electricity and natural gas. Its customers include a variety of industrial and commercial consumers, independent transmission system operators, and government-owned entities.

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