New Fortress Energy (New Fortress Energy) Interest Coverage : 3.82 (As of Mar. 2024)

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What is New Fortress Energy 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. New Fortress Energy's Operating Income for the three months ended in Mar. 2024 was $263 Mil. New Fortress Energy's Interest Expense for the three months ended in Mar. 2024 was $-69 Mil. New Fortress Energy's interest coverage for the quarter that ended in Mar. 2024 was 3.82. 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. New Fortress Energy Inc interest coverage is 3.56, which is low.

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

NFE' s Interest Coverage Range Over the Past 10 Years
Min: 1.95 Med: 3.59 Max: 3.59
Current: 3.56

NFE's Interest Coverage is ranked worse than
52.36% of 445 companies
in the Utilities - Regulated industry
Industry Median: 3.77 vs NFE: 3.56

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

New Fortress Energy Interest Coverage Historical Data

The historical data trend for New Fortress 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.

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New Fortress Energy Interest Coverage Chart

New Fortress Energy Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.95

3.59

New Fortress Energy Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															3.93	3.14	2.54	4.56	3.82

Competitive Comparison of New Fortress Energy's Interest Coverage

For the Utilities - Regulated Gas subindustry, New Fortress 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.

New Fortress Energy's Interest Coverage Distribution in the Utilities - Regulated Industry

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

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

New Fortress 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.

New Fortress 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, New Fortress Energy's Interest Expense was $-259 Mil. Its Operating Income was $931 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,917 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	931.193	/	-259.273
	=	3.59

New Fortress Energy's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, New Fortress Energy's Interest Expense was $-69 Mil. Its Operating Income was $263 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,287 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	263.015	/	-68.891
	=	3.82

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

New Fortress Energy (NAS:NFE) 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 .

New Fortress Energy Interest Coverage Related Terms

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

New Fortress Energy (New Fortress Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » New Fortress Energy Inc (NAS:NFE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

NF0:Germany NF0:Germany

Address

111 W. 19th Street, 8th Floor, New York, NY, USA, 10011

Website

https://www.newfortressenergy.com

New Fortress Energy is an integrated gas-to-power company. Its business model spans the entire production and delivery chain from natural gas procurement and liquefaction to logistics, shipping, terminals, and conversion or development of a natural gas-fired generation. It has invested in floating, liquefied natural gas vessels to both lower the cost of acquiring gas while securing a long-term supply for its terminals. Its segments include terminals and infrastructure, or T&I, and ships.

Executives

Desmond Iain Catterall	director	C/O NEW FORTRESS ENERGY HOLDINGS, 111 WEST 19TH STREET 8TH FLOOR, NEW YORK NY 10011
Timothy W. Jay	director	111 W 19TH STREET, 8TH FLOOR, NEW YORK NY 10011
Matthew Wilkinson	director	C/O NEW FORTRESS ENERGY HOLDINGS, 111 WEST 19TH STREET 8TH FLOOR, NEW YORK NY 10011
C. William Griffin	director	C/O NEW FORTRESS ENERGY HOLDINGS, 111 WEST 19TH STREET 8TH FLOOR, NEW YORK NY 10011
Katherine Wanner	director	C/O NEW FORTRESS ENERGY HOLDINGS, 111 WEST 19TH STREET 8TH FLOOR, NEW YORK NY 10011
Nfe Smrs Holdings Llc	10 percent owner	10 STATION PLACE, P.O. BOX 233, NORFOLK CT 06058
Yunyoung Shin	officer: Chief Accounting Officer	C/O NEW FORTRESS ENERGY, 111 WEST 19TH STREET, 8TH FLOOR, NEW YORK NY 10011
John J Mack	director	C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK NY 10036
Lynn Edens	10 percent owner	C/O FORTRESS INVESTMENT GROUP LLC, 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Edens Family Holdings Llc	10 percent owner	C/O FORTRESS INVESTMENT GROUP LLC, 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Alexander Thomson	10 percent owner	10 STATION PLACE, P.O. BOX 233, NORFOLK CT 06058
Jonathan Rotolo	10 percent owner	10 STATION PLACE, P.O. BOX 233, NORFOLK CT 06058
Great Mountain Partners Llc	10 percent owner	157 CHURCH STREET, 20TH FLOOR, NEW HAVEN CT 06510
David J Grain	director	C/O MOTIENT CORPORATION, 300 KNIGHTSBRIDGE PARKWAY, LINCOLNSHIRE IL 60069
Wesley R Edens	director, officer: Chief Executive Officer	1345 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10105