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Peabody Energy Financial Strength

: 6 (As of Jun. 2022)
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Peabody Energy has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Peabody Energy's Interest Coverage for the quarter that ended in Jun. 2022 was 10.32. Peabody Energy's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.20. As of today, Peabody Energy's Altman Z-Score is 2.01.


Competitive Comparison

For the Thermal Coal subindustry, Peabody Energy's Financial Strength, along with its competitors' market caps and Financial Strength 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.

   

Peabody Energy Financial Strength Distribution

For the Other Energy Sources industry and Energy sector, Peabody Energy's Financial Strength distribution charts can be found below:

* The bar in red indicates where Peabody Energy's Financial Strength falls into.



Peabody Energy Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Peabody Energy's Interest Expense for the months ended in Jun. 2022 was $-38 Mil. Its Operating Income for the months ended in Jun. 2022 was $388 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $894 Mil.

Peabody Energy's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*388/-37.6
=10.32

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Peabody Energy's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(177.7 + 893.6) / 5287.6
=0.20

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Peabody Energy has a Z-score of 2.01, indicating it is in Grey Zones. This implies that Peabody Energy is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.01 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Peabody Energy  (NYSE:BTU) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Peabody Energy has the Financial Strength Rank of 6.


Peabody Energy Financial Strength Related Terms

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


Peabody Energy Business Description

Peabody Energy logo
Traded in Other Exchanges
Address
701 Market Street, Peabody Plaza, St. Louis, MO, USA, 63101
Peabody Energy mines and sells coal through approximately 21 coal mines in the United States and Australia. Peabody also markets and brokers coal, both as principal and agent, and trades coal and freight-related contracts through offices in China, Australia, the United Kingdom, and the U.S. The company operates in the following segment: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining and Corporate and Other.
Executives
Grech James C. officer: President and CEO 1000 CONSOL ENERGY DRIVE CANONSBURG PA 15317
Champion William H director C/O CORPORATE SECRETARY 701 MARKET STREET ST. LOUIS MO 63101
Jarboe Scott T. officer: CLO and Corporate Secretary C/O PEABODY ENERGY CORP. 701 MARKET STREET ST. LOUIS MO 63101
Yeates Darren Ronald director C/O CORPORATE SECRETARY 701 MARKET STREET ST. LOUIS MO 63101
Algaze Samantha director C/O ELLIOTT MANAGEMENT CORPORATION 40 WEST 57TH STREET NEW YORK NY 10019
Miller David J director C/O ELLIOTT MANAGEMENT CORPORATION 40 WEST 57TH STREET NEW YORK NY 10019
Spurbeck Mark officer: SVP and Interim CFO C/O CORP. SECRETARY, PEABODY ENERGY CORP 701 MARKET STREET ST. LOUIS MO 63101
Elliott Investment Management L.p. 10 percent owner PHILLIPS POINT, EAST TOWER 777 SOUTH FLAGER DRIVE, SUITE 1000 WEST PALM BEACH FL 33401
Hathhorn Marc E. officer: PRESIDENT-AUSTRALIA OPERATIONS C/O CORPORATE SECRETARY 701 MARKET STREET ST. LOUIS MO 63101
Bertone Andrea E. director C/O CORP. SECRETARY, PEABODY ENERGY CORP 701 MARKET STREET ST. LOUIS MO 63101
Elliott International, L.p. 10 percent owner C/O MAPLES & CALDER, P.O. BOX 309 UGLAND HOUSE, SOUTH CHURCH STREET GEORGE TOWN E9 00000
Elliott Associates, L.p. 10 percent owner PHILLIPS POINT, EAST TOWER 777 SOUTH FLAGER DRIVE, SUITE 1000 WEST PALM BEACH FL 33401
Richard Paul V. officer: SVP & CHIEF HR OFFICER C/O ASSISTANT CORPORATE SECRETARY PEABODY ENERGY CORP., 701 MARKET ST. ST. LOUIS MO 63101
Dorch A. Verona officer: EVP,CLO,Govt Affairs&Corp Secy 350 POPLAR CHURCH ROAD CAMP HILL PA 17011
Discovery Global Opportunity Partners, L.p. 10 percent owner DISCOVERY CAPITAL MANAGEMENT, LLC 20 MARSHALL STREET, SUITE 310 SOUTH NORWALK CT 06854

Peabody Energy Headlines

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