AB Ignitis Grupe (LSE:IGN) Interest Coverage : 12.19 (As of Dec. 2023)

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What is AB Ignitis Grupe 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. AB Ignitis Grupe's Operating Income for the three months ended in Dec. 2023 was €118 Mil. AB Ignitis Grupe's Interest Expense for the three months ended in Dec. 2023 was €-10 Mil. AB Ignitis Grupe's interest coverage for the quarter that ended in Dec. 2023 was 12.19. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for AB Ignitis Grupe's Interest Coverage or its related term are showing as below:

LSE:IGN' s Interest Coverage Range Over the Past 10 Years
Min: 0.96 Med: 10.28 Max: 15.46
Current: 8.49

LSE:IGN's Interest Coverage is ranked better than
72.81% of 445 companies
in the Utilities - Regulated industry
Industry Median: 3.77 vs LSE:IGN: 8.49

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

AB Ignitis Grupe Interest Coverage Historical Data

The historical data trend for AB Ignitis Grupe'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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AB Ignitis Grupe Interest Coverage Chart

AB Ignitis Grupe Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

6.26

11.39

8.48

14.02

10.28

AB Ignitis Grupe Quarterly Data
	Dec17	Dec18	Jun19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															8.87	13.95	0.94	5.41	12.19

Competitive Comparison of AB Ignitis Grupe's Interest Coverage

For the Utilities - Diversified subindustry, AB Ignitis Grupe'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.

AB Ignitis Grupe's Interest Coverage Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where AB Ignitis Grupe's Interest Coverage falls into.

AB Ignitis Grupe 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.

AB Ignitis Grupe'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, AB Ignitis Grupe's Interest Expense was €-35 Mil. Its Operating Income was €356 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,564 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	355.7	/	-34.6
	=	10.28

AB Ignitis Grupe's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, AB Ignitis Grupe's Interest Expense was €-10 Mil. Its Operating Income was €118 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,564 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	118.2	/	-9.7
	=	12.19

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

AB Ignitis Grupe (LSE:IGN) 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 .

AB Ignitis Grupe Interest Coverage Related Terms

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

AB Ignitis Grupe (LSE:IGN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » AB Ignitis Grupe (LSE:IGN) » Definitions » Interest Coverage

Traded in Other Exchanges

IGN1L:Lithuania IGV0:Germany

Address

Laisves Avenue 10, Vilnius, LTU, LT-04215

Website

https://www.ignitisgrupe.lt

AB Ignitis Grupe is a utility and renewable energy company in the Baltic region. The group's core business is focused on operating electricity and gas distribution networks. It operates in four segments: Customers & Solutions, which is into electricity and gas supply, trading and balancing, energy efficiency projects, construction of solar power plants for businesses and residents, installation and operation of electric vehicle charging stations, and energy solutions; Networks segment, which is engaged in the operation, maintenance, management and development of electricity and gas distribution networks; Green Generation segment; and Flexible Generation segment. The vast majority of the revenue comes from the Customers & Solutions and Network segments.