Teck Resources (TSX:TECK.A) Interest Coverage

: 6.46 (As of Dec. 2023)

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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. Teck Resources's Operating Income for the three months ended in Dec. 2023 was C$795 Mil. Teck Resources's Interest Expense for the three months ended in Dec. 2023 was C$-123 Mil. Teck Resources's interest coverage for the quarter that ended in Dec. 2023 was 6.46. The higher the ratio, the stronger the company's financial strength is.

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

TSX:TECK.A' s Interest Coverage Range Over the Past 10 Years
Min: 2.39 Med: 13.87 Max: 60.73
Current: 19.4

TSX:TECK.A's Interest Coverage is ranked worse than
74.12% of 1341 companies
in the Metals & Mining industry
Industry Median: No Debt vs TSX:TECK.A: 19.40

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

Teck Resources Interest Coverage Historical Data

The historical data trend for Teck 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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Teck Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

27.63

3.76

19.36

Teck 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																-	80.33	38.58	20.69	6.46

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Teck 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.

Teck Resources Interest Coverage Distribution

For the Metals & Mining industry and Basic Materials sector, Teck Resources's Interest Coverage distribution charts can be found below:

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

Teck 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.

Teck Resources'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, Teck Resources's Interest Expense was C$-191 Mil. Its Operating Income was C$3,698 Mil. And its Long-Term Debt & Capital Lease Obligation was C$10,382 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3698	/	-191
	=	19.36

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

Here, for the three months ended in Dec. 2023, Teck Resources's Interest Expense was C$-123 Mil. Its Operating Income was C$795 Mil. And its Long-Term Debt & Capital Lease Obligation was C$10,382 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	795	/	-123
	=	6.46

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

Teck Resources (TSX:TECK.A) 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 .

Teck Resources Interest Coverage Related Terms

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

Teck Resources (TSX:TECK.A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Teck Resources Ltd (TSX:TECK.A) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TCKRF:USA TECK:USA TECK:Mexico TEKB:Germany TECK.B:Canada

Address

550 Burrard Street, Suite 3300, Vancouver, BC, CAN, V6C 0B3

Website

https://www.teck.com

Teck is a diversified miner with coal, copper, and zinc operations in Canada, the United States, Chile, and Peru. Metallurgical coal is Teck's primary commodity in terms of EBITDA contribution, followed by copper and zinc. Teck is the world's second-largest exporter of seaborne metallurgical coal and is a top-three zinc miner. Its major new copper mine in Chile at the majority-owned Quebrada Blanca 2, in partnership with Sumitomo, will drive an increase in Teck's attributable copper production by roughly 80%. Along with a number of additional copper growth options, Teck's strategy is to rebalance its portfolio to low carbon metals such as copper. It sold its oil sands business in early 2023 and has agreed to sell its coal business, with the deal likely closing in the third quarter of 2024.

Teck Resources (TSX:TECK.A) Headlines

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