MRC Global (MRC Global) Interest Coverage : 4.67 (As of Dec. 2023)

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What is MRC Global 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. MRC Global's Operating Income for the three months ended in Dec. 2023 was $28 Mil. MRC Global's Interest Expense for the three months ended in Dec. 2023 was $-6 Mil. MRC Global's interest coverage for the quarter that ended in Dec. 2023 was 4.67. The higher the ratio, the stronger the company's financial strength is.

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

MRC' s Interest Coverage Range Over the Past 10 Years
Min: 0.3 Med: 3.55 Max: 5.84
Current: 5.84

MRC's Interest Coverage is ranked worse than
54.15% of 759 companies
in the Oil & Gas industry
Industry Median: 6.73 vs MRC: 5.84

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

MRC Global Interest Coverage Historical Data

The historical data trend for MRC Global'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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MRC Global Interest Coverage Chart

MRC Global Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

2.58

0.30

5.83

5.84

MRC Global Quarterly Data
	Mar19	Jun19	Sep19	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															5.00	8.14	4.50	6.33	4.67

Competitive Comparison of MRC Global's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, MRC Global'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.

MRC Global's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, MRC Global's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MRC Global's Interest Coverage falls into.

MRC Global 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.

MRC Global'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, MRC Global's Interest Expense was $-32 Mil. Its Operating Income was $187 Mil. And its Long-Term Debt & Capital Lease Obligation was $195 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	187	/	-32
	=	5.84

MRC Global's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, MRC Global's Interest Expense was $-6 Mil. Its Operating Income was $28 Mil. And its Long-Term Debt & Capital Lease Obligation was $195 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	28	/	-6
	=	4.67

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

MRC Global (NYSE:MRC) 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 .

MRC Global Interest Coverage Related Terms

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

MRC Global (MRC Global) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » MRC Global Inc (NYSE:MRC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1301 McKinney Street, Suite 2300, Houston, TX, USA, 77010

Website

https://www.mrcglobal.com

MRC Global Inc distributes pipes, valves, fittings, and related products and services to the energy industry. Products are often used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions. In these conditions and other environments, MRC's valve products give the customer the ability to control the direction, velocity, and pressure of fluids and gases within transmission networks. In addition, other products can be used to regulate flow and on/off service. MRC's other products, which include pipe, steel fitting, and tubular goods, are used across all of the industries in which the company operates. Specialized services are delivered alongside this array of products to enhance the client relationship.

Executives

Shweta Kurvey-mishra	officer: See Remarks	1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
Anne Mcentee	director	1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
Malcolm O'neal	officer: SVP - Human Resources	1301 MCKINNEY ST., SUITE 2300, HOUSTON TX 77010
Emily K. Shields	officer: See Remarks	1301 MCKINNEY ST., SUITE 2300, HOUSTON TX 77010
Stephen B. Smith	officer: See Remarks	1301 MCKINNEY ST., SUITE 2300, HOUSTON TX 77010
Ronald L Jadin	director	100 GRAINGER PARKWAY, LAKE FOREST IL 60045
George John Damiris	director	100 CRESCENT COURT, SUITE 1600, DALLAS TX 75201
Gillian Anderson	officer: See Remarks	1301 MCKINNEY ST., SUITE 2300, HOUSTON TX 77010
Robert J. Saltiel	director, officer: President and CEO	4 GREENWAY PLAZA, HOUSTON TX 77046
Rance C Long	officer: SVP-Business Development	1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
John P Mccarthy	officer: SVP-Supply Chain	1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
Cornell Capital Gp Ii Lp	10 percent owner	C/O CORNELL CAPITAL LLC, 499 PARK AVENUE, 21ST FLOOR, NEW YORK NY 10022
Cornell Investment Partners Llc	10 percent owner	C/O DAVIS POLK & WARDWELL LLP, ATTN: R.A DRUCKER, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Mario Investments Llc	10 percent owner	C/O DAVIS POLK & WARDWELL LLP, ATTN: R.A DRUCKER, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Cornell Capital Special Situations Partners Ii Lp	10 percent owner	C/O CORNELL CAPITAL LLC, 499 PARK AVENUE, 21ST FLOOR, NEW YORK NY 10022