Warrior Met Coal (Warrior Met Coal) Interest Coverage : 81.21 (As of Dec. 2023)

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What is Warrior Met Coal 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. Warrior Met Coal's Operating Income for the three months ended in Dec. 2023 was $134 Mil. Warrior Met Coal's Interest Expense for the three months ended in Dec. 2023 was $-2 Mil. Warrior Met Coal's interest coverage for the quarter that ended in Dec. 2023 was 81.21. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Warrior Met Coal Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Warrior Met Coal's Interest Coverage or its related term are showing as below:

HCC' s Interest Coverage Range Over the Past 10 Years
Min: 8.19 Med: 20.25 Max: 333.76
Current: 333.76

HCC's Interest Coverage is ranked better than
94.24% of 469 companies
in the Steel industry
Industry Median: 6.08 vs HCC: 333.76

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

Warrior Met Coal Interest Coverage Historical Data

The historical data trend for Warrior Met Coal'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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Warrior Met Coal Interest Coverage Chart

Warrior Met Coal Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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13.07

8.19

26.63

30.61

Warrior Met Coal 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															-	N/A	N/A	N/A	81.21

Competitive Comparison of Warrior Met Coal's Interest Coverage

For the Coking Coal subindustry, Warrior Met Coal'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.

Warrior Met Coal's Interest Coverage Distribution in the Steel Industry

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

* The bar in red indicates where Warrior Met Coal's Interest Coverage falls into.

Warrior Met Coal 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.

Warrior Met Coal'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, Warrior Met Coal's Interest Expense was $-18 Mil. Its Operating Income was $550 Mil. And its Long-Term Debt & Capital Lease Obligation was $162 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	549.697	/	-17.96
	=	30.61

Warrior Met Coal's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Warrior Met Coal's Interest Expense was $-2 Mil. Its Operating Income was $134 Mil. And its Long-Term Debt & Capital Lease Obligation was $162 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	133.746	/	-1.647
	=	81.21

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

Warrior Met Coal (NYSE:HCC) 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 .

Warrior Met Coal Interest Coverage Related Terms

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

Warrior Met Coal (Warrior Met Coal) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Warrior Met Coal Inc (NYSE:HCC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

WJ4:Germany WJ4:Germany

Address

16243 Highway 216, Brookwood, AL, USA, 35444

Website

http://www.warriormetcoal.com

Warrior Met Coal Inc is a U.S based company. It produces and exports of met coal that operates two underground mines in Alabama. The company sells to steels manufacturers in Europe, Asia, and South America. Its mining operations consist of two underground met coal mines in Southern Appalachia's coal seam and other surface met and thermal coal mines.

Executives

Stephen D. Williams	director	C/O WARRIOR MET COAL, LLC, 16243 HIGHWAY 216, BROOK AL 35444
Brian M Chopin	officer: See Remarks	3000 RIVERCHASE GALLERIA, SUITE #1700, BIRMINGHAM AL 35244
Lisa M. Schnorr	director	C/O GRAHAM CORPORATION, 20 FLORENCE AVENUE, BATAVIA NY 14020
Jack K. Richardson	officer: CHIEF OPERATING OFFICER	C/O WARRIOR MET COAL, LLC, 16243 HIGHWAY 216, BROOKWOOD AL 35444
Walter J Scheller	director, officer: CHIEF EXECUTIVE OFFICER	16243 HIGHWAY 216, BIRMINGHAM AL 35444
Kelli K. Gant	officer: See Remarks	C/O WARRIOR MET COAL, LLC, 16243 HIGHWAY 216, BROOKWOOD AL 35444
Charles Lussier	officer: Senior VP - Sales & Marketing	16243 HIGHWAY 216, BROOKWOOD AL 35444
Dale W Boyles	officer: CHIEF FINANCIAL OFFICER	1000 EAST HANES MILL ROAD, WINSTON-SALEM NC 27105
Ana B Amicarella	director	1915 SNAPPS FERRY ROAD, BUILDING N, GREENEVILLE TN 37745
Apollo Management Holdings Gp, Llc	10 percent owner	9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Apollo Svf Management, L.p.	10 percent owner	TWO MANHATTANVILLE ROAD, PURCHASE NY 10577
Apollo Special Opportunities Managed Account Lp	10 percent owner	ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Apollo Svf Management Gp, Llc	10 percent owner	9 WEST 57TH STREET, NEW YORK NY 10019
Steamboat Credit Opportunities Intermediate Fund Lp	10 percent owner	C/O GSO CAPITAL PARTNERS LP, 345 PARK AVENUE, NEW YORK NY 10154
Apollo Advisors Viii, L.p.	10 percent owner	ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577