Xcel Energy (Xcel Energy) Interest Coverage

: 2.36 (As of Dec. 2023)

View and export this data going back to 1993. Start your Free Trial

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. Xcel Energy's Operating Income for the three months ended in Dec. 2023 was $648 Mil. Xcel Energy's Interest Expense for the three months ended in Dec. 2023 was $-274 Mil. Xcel Energy's interest coverage for the quarter that ended in Dec. 2023 was 2.36. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Xcel Energy Inc interest coverage is 2.54, which is low.

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

XEL' s Interest Coverage Range Over the Past 10 Years
Min: 2.54 Med: 2.99 Max: 3.84
Current: 2.54

XEL's Interest Coverage is ranked worse than
66.89% of 441 companies
in the Utilities - Regulated industry
Industry Median: 3.67 vs XEL: 2.54

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

Xcel Energy Interest Coverage Historical Data

The historical data trend for Xcel Energy'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.

Xcel Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.96

2.75

2.70

2.62

2.58

Xcel Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.00	2.36	1.63	3.84	2.36

Competitive Comparison

For the Utilities - Regulated Electric subindustry, Xcel Energy'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.

Xcel Energy Interest Coverage Distribution

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

* The bar in red indicates where Xcel Energy's Interest Coverage falls into.

Xcel Energy 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.

Xcel Energy'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, Xcel Energy's Interest Expense was $-1,004 Mil. Its Operating Income was $2,588 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,951 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2588	/	-1004
	=	2.58

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

Here, for the three months ended in Dec. 2023, Xcel Energy's Interest Expense was $-274 Mil. Its Operating Income was $648 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,951 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	648	/	-274
	=	2.36

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

Xcel Energy (NAS:XEL) 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 .

Xcel Energy Interest Coverage Related Terms

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

Xcel Energy (Xcel Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Xcel Energy Inc (NAS:XEL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

NRN:Germany

Address

414 Nicollet Mall, Minneapolis, MN, USA, 55401

Website

https://www.xcelenergy.com

Xcel Energy manages utilities serving 3.8 million electric customers and 2.1 million natural gas customers in eight states. Its utilities are Northern States Power, which serves customers in Minnesota, North Dakota, South Dakota, Wisconsin, and Michigan; Public Service Company of Colorado; and Southwestern Public Service Company, which serves customers in Texas and New Mexico. It is one of the largest renewable energy owners and suppliers in the U.S. with more than half of its electricity sales coming from carbon-free energy.

Executives

Robert Frenzel	director, officer: Chairman, President and CEO	414 NICOLLET MALL, MINNEAPOLIS MN 55401
Amanda J Rome	officer: EVP, Group President Utilities	414 NICOLLET MALL, MINNEAPOLIS MN 55401
Timothy A Welsh	director	800 NICOLLET MALL, MINNEAPOLIS MN 55402
Netha N. Johnson	director	3489 CRESTMOOR DRIVE, WOODBURY MN 55125
Patricia L Kampling	director	PO BOX 2568, MADISON WI 53701
Megan D Burkhart	director	1717 MAIN STREET, DALLAS TX 75201
George J Kehl	director	414 NICOLLET MALL, MINNEAPOLIS MN 55401
James T Prokopanko	director	25990 BIRCH BLUFF ROAD, EXCELSIOR MN 55331
Lynn Casey	director	414 NICOLLET MALL, MINNEAPOLIS MN 55401
Kim Williams	director	C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Richard T Obrien	director	6363 SOUTH FIDDLERS GREEN CIRCLE, GREENWOOD VILLAGE CO 80111
Charles G Pardee	director	10 SOUTH DEARBORN STREET, 54TH FLOOR, CHICAGO IL 60603
Daniel Yohannes	director	414 NICOLLET MALL, MINNEAPOLIS MN 55014
Christopher J. Policinski	director	4001 LEXINGTON AVENUE N., ARDEN HILLS MN 55126
Brett C Carter	officer: EVP, Group President Utilitie, other: Chief Customer Officer	414 NICOLLET MALL, 401-9, MINNEAPOLIS MN 55401