Corporacion Acciona Energias Renovables (XMAD:ANE) Interest Coverage : 5.55 (As of Dec. 2023)

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What is Corporacion Acciona Energias Renovables 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. Corporacion Acciona Energias Renovables's Operating Income for the six months ended in Dec. 2023 was €311 Mil. Corporacion Acciona Energias Renovables's Interest Expense for the six months ended in Dec. 2023 was €-56 Mil. Corporacion Acciona Energias Renovables's interest coverage for the quarter that ended in Dec. 2023 was 5.55. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Corporacion Acciona Energias Renovables's Interest Coverage or its related term are showing as below:

XMAD:ANE' s Interest Coverage Range Over the Past 10 Years
Min: 1.58 Med: 5.53 Max: 12.52
Current: 6.55

XMAD:ANE's Interest Coverage is ranked better than
73.39% of 327 companies
in the Utilities - Independent Power Producers industry
Industry Median: 3.24 vs XMAD:ANE: 6.55

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

Corporacion Acciona Energias Renovables Interest Coverage Historical Data

The historical data trend for Corporacion Acciona Energias Renovables'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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Corporacion Acciona Energias Renovables Interest Coverage Chart

Corporacion Acciona Energias Renovables Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.85

4.50

8.22

12.52

6.55

Corporacion Acciona Energias Renovables Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial					-	10.05	18.62	7.32	5.55

Competitive Comparison of Corporacion Acciona Energias Renovables's Interest Coverage

For the Utilities - Renewable subindustry, Corporacion Acciona Energias Renovables'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.

Corporacion Acciona Energias Renovables's Interest Coverage Distribution in the Utilities - Independent Power Producers Industry

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

* The bar in red indicates where Corporacion Acciona Energias Renovables's Interest Coverage falls into.

Corporacion Acciona Energias Renovables 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.

Corporacion Acciona Energias Renovables'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, Corporacion Acciona Energias Renovables's Interest Expense was €-129 Mil. Its Operating Income was €845 Mil. And its Long-Term Debt & Capital Lease Obligation was €4,330 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	845	/	-129
	=	6.55

Corporacion Acciona Energias Renovables's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Corporacion Acciona Energias Renovables's Interest Expense was €-56 Mil. Its Operating Income was €311 Mil. And its Long-Term Debt & Capital Lease Obligation was €4,330 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	311	/	-56
	=	5.55

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

Corporacion Acciona Energias Renovables (XMAD:ANE) 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 .

Corporacion Acciona Energias Renovables Interest Coverage Related Terms

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

Corporacion Acciona Energias Renovables (XMAD:ANE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Corporacion Acciona Energias Renovables SA (XMAD:ANE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ANEe:UK 5BP:Germany

Address

Avenida de Europa, 18, Parque Empresarial La Moraleja, Alcobendas, Madrid, ESP, 28108

Website

https://www.acciona-energia.com

A renewables developer, Acciona Energia was spun off from Spanish industrial conglomerate Acciona in July 2021. The floating share is 17.3%. In June 2022, the group had 9.2 gigawatts of consolidated capacity (11.2 GW of total capacity). Eighty percent of Acciona Energia's capacity is onshore wind, nearly 10% is hydro dams in Spain and 9% is solar photovoltaic. Geographically, 50% of the capacity are located in Spain. The three biggest markets outside Spain are Mexico, the U.S., and Australia accounting for 12%, 11%, and 6% of capacity, respectively.

Corporacion Acciona Energias Renovables (XMAD:ANE) Headlines

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