Kinder Morgan (WBO:KMI) Interest Coverage

: 2.44 (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. Kinder Morgan's Operating Income for the three months ended in Dec. 2023 was €1,012 Mil. Kinder Morgan's Interest Expense for the three months ended in Dec. 2023 was €-414 Mil. Kinder Morgan's interest coverage for the quarter that ended in Dec. 2023 was 2.44. The higher the ratio, the stronger the company's financial strength is.

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

WBO:KMI' s Interest Coverage Range Over the Past 10 Years
Min: 1.93 Med: 2.2 Max: 3.04
Current: 2.37

WBO:KMI's Interest Coverage is ranked worse than
79.34% of 760 companies
in the Oil & Gas industry
Industry Median: 6.67 vs WBO:KMI: 2.37

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

Kinder Morgan Interest Coverage Historical Data

The historical data trend for Kinder Morgan'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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Kinder Morgan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.18

2.19

3.04

2.67

2.37

Kinder Morgan Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.59	2.68	2.30	2.05	2.44

Competitive Comparison

For the Oil & Gas Midstream subindustry, Kinder Morgan'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.

Kinder Morgan Interest Coverage Distribution

For the Oil & Gas industry and Energy sector, Kinder Morgan's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kinder Morgan's Interest Coverage falls into.

Kinder Morgan 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.

Kinder Morgan'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, Kinder Morgan's Interest Expense was €-1,648 Mil. Its Operating Income was €3,897 Mil. And its Long-Term Debt & Capital Lease Obligation was €25,737 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3897.25	/	-1647.849
	=	2.37

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

Here, for the three months ended in Dec. 2023, Kinder Morgan's Interest Expense was €-414 Mil. Its Operating Income was €1,012 Mil. And its Long-Term Debt & Capital Lease Obligation was €25,737 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1012.368	/	-414.484
	=	2.44

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

Kinder Morgan (WBO:KMI) 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 .

Kinder Morgan Interest Coverage Related Terms

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

Kinder Morgan (WBO:KMI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Kinder Morgan Inc (WBO:KMI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

KMI:USA 2KD:Germany KMIC34:Brazil

Address

1001 Louisiana Street, Suite 1000, Houston, TX, USA, 77002

Website

https://www.kindermorgan.com

Kinder Morgan is one of the largest midstream energy firms in North America, with an interest in or an operator on about 83,000 miles in pipelines and 140 storage terminals. The company is active in the transportation, storage, and processing of natural gas, crude oil, refined products, natural gas liquids, and carbon dioxide. The majority of Kinder Morgan's cash flows stem from fee-based contracts for handling, moving, and storing fossil fuel products.