Ramaco Resources (Ramaco Resources) Interest Coverage : 2.46 (As of Mar. 2024)

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What is Ramaco Resources 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. Ramaco Resources's Operating Income for the three months ended in Mar. 2024 was $3.3 Mil. Ramaco Resources's Interest Expense for the three months ended in Mar. 2024 was $-1.3 Mil. Ramaco Resources's interest coverage for the quarter that ended in Mar. 2024 was 2.46. The higher the ratio, the stronger the company's financial strength is.

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

METC' s Interest Coverage Range Over the Past 10 Years
Min: 8.41 Med: 16.89 Max: 24.75
Current: 8.41

METC's Interest Coverage is ranked better than
56.77% of 465 companies
in the Steel industry
Industry Median: 6.2 vs METC: 8.41

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

Ramaco Resources Interest Coverage Historical Data

The historical data trend for Ramaco Resources'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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Ramaco Resources Interest Coverage Chart

Ramaco Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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24.75

15.47

22.02

10.70

Ramaco Resources 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															13.80	3.99	6.57	22.87	2.46

Competitive Comparison of Ramaco Resources's Interest Coverage

For the Coking Coal subindustry, Ramaco Resources'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.

Ramaco Resources's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Ramaco Resources's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ramaco Resources's Interest Coverage falls into.

Ramaco Resources 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.

Ramaco Resources'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, Ramaco Resources's Interest Expense was $-8.9 Mil. Its Operating Income was $95.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $38.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	95.245	/	-8.903
	=	10.70

Ramaco Resources's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Ramaco Resources's Interest Expense was $-1.3 Mil. Its Operating Income was $3.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $66.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	3.275	/	-1.332
	=	2.46

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

Ramaco Resources (NAS:METC) 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 .

Ramaco Resources Interest Coverage Related Terms

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

Ramaco Resources (Ramaco Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Ramaco Resources Inc (NAS:METC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

METCB:USA

Address

250 West Main Street, Suite 1900, Lexington, KY, USA, 40507

Website

https://www.ramacoresources.com

Ramaco Resources Inc is a United States-based company engaged in operating and developing high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. Its only revenue-generating product is metallurgical coal which is used to make metallurgical coke. This is used as an input in the blast furnace steel-making process. The company's customer base encompasses U.S.-based blast furnace steel mills and U.S.-based coke plants, as well as international metallurgical coal consumers. Ramaco's portfolio comprises of the Elk Creek, Berwind, RAM Mine, and Knox Creek projects.

Executives

Bryan H Lawrence	director	C/O CROSSTEX ENERGY HOLDINGS INC, 2501 CEDAR SPRINGS STE 600, DALLAS TX 75201
Peter A Leidel	director
Yorktown Energy Partners Ix, L.p.	10 percent owner	410 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10022
Yorktown Ix Associates Llc	10 percent owner	410 PARK AVENUE, 19TH FLOOR, NEW YORK NY 10022
Yorktown Energy Partners Xi, L.p.	10 percent owner	410 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10022
Yorktown Xi Associates Llc	10 percent owner	410 PARK AVENUE, 19TH FLOOR, NEW YORK NY 10022
Richard M Whiting	director	250 WEST MAIN STREET, SUITE 210, LEXINGTON KY 40507
Frischkorn David E K	director	1301 MCKINNEY ST., SUITE 3550, HOUSTON TX 77010-3053
Aurelia Skipwith Giacometto	director	20 F STREET, NW SUITE 700, WASHINGTON DC 40509
James Scott Kreutzer	officer: SVP & Chief Admin. Officer	C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
Horn Paul Bryan Jr.	officer: SVP & Chief Mine Dev. Officer	C/O RAMACO RESOURCES, 20 F STREET NW, SUITE 700, WASHINGTON DC 20001
Energy Capital Partners Mezzanine Opportunities Fund A, Lp	10 percent owner	51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
Energy Capital Partners Mezzanine, Llc	10 percent owner	51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
Energy Capital Partners Mezzanine Opportunities Fund, Lp	10 percent owner	51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
Jason Todd Fannin	officer: Chief Commercial Officer	1529 EDGEMONT AVE., BRISTOL VA 37620