Southern Copper (Southern Copper) Interest Coverage

: 10.74 (As of Dec. 2023)

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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. Southern Copper's Operating Income for the three months ended in Dec. 2023 was $869 Mil. Southern Copper's Interest Expense for the three months ended in Dec. 2023 was $-81 Mil. Southern Copper's interest coverage for the quarter that ended in Dec. 2023 was 10.74. The higher the ratio, the stronger the company's financial strength is.

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

SCCO' s Interest Coverage Range Over the Past 10 Years
Min: 5.38 Med: 9.48 Max: 16.98
Current: 12.83

SCCO's Interest Coverage is ranked worse than
77.46% of 1344 companies
in the Metals & Mining industry
Industry Median: No Debt vs SCCO: 12.83

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

Southern Copper Interest Coverage Historical Data

The historical data trend for Southern Copper'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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Southern Copper Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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8.08

8.51

16.98

13.04

12.83

Southern Copper 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															16.53	16.37	11.04	13.12	10.74

Competitive Comparison

For the Copper subindustry, Southern Copper'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.

Southern Copper Interest Coverage Distribution

For the Metals & Mining industry and Basic Materials sector, Southern Copper's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Southern Copper's Interest Coverage falls into.

Southern Copper 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.

Southern Copper'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, Southern Copper's Interest Expense was $-327 Mil. Its Operating Income was $4,192 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,952 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4192.3	/	-326.7
	=	12.83

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

Here, for the three months ended in Dec. 2023, Southern Copper's Interest Expense was $-81 Mil. Its Operating Income was $869 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,952 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	868.7	/	-80.9
	=	10.74

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

Southern Copper (NYSE:SCCO) 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 .

Southern Copper Interest Coverage Related Terms

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

Southern Copper (Southern Copper) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Southern Copper Corp (NYSE:SCCO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SCCO:Peru SCCO:Mexico PCU:Germany PCU:Germany SCCO:Argentina

Address

7310 North 16th Street, Suite 135, Phoenix, AZ, USA, 85020

Website

https://www.southerncoppercorp.com

Southern Copper Corp is an integrated producer of copper and other minerals and operates the mining, smelting, and refining facilities in Peru and Mexico. Its production includes copper, molybdenum, zinc, and silver. The company operates through the following segments: Peruvian operations, Mexican open-pit operations, and Mexican underground mining operations. Southern Copper generates the majority of its revenue from the sale of copper and the rest from the sale of non-copper products, such as molybdenum, silver, zinc, lead, and gold. Its geographical segments are The Americas, Europe, and Asia.

Executives

Castillo Sanchez Mejorada Enrique	director	C/O SOUTHERN COPPER CORPORATION, 11811 NORTH TATUM BLVD., SUITE 2500, PHOENIX AZ 85028
Palomino Bonilla Luis Miguel	director	C/O SOUTHERN PERU COPPER CORP, 2575 E CAMELBACK RD, PHOENIX AZ 85016
Velasco German Larrea Mota	director, officer: Chairman of the Board and CEO
Contreras Lerdo De Tejada Leonardo	director	1440 E. MISSOURI AVENUE, SUITE 160, PHOENIX AZ 85014
Andreve Vicente Ariztegui	director	1440 E. MISSOURI AVENUE, SUITE 160, PHOENIX AZ 85014
Perez Alfredo Casar	director	C/O SOUTHERN COPPER CORPORATION, AV. CAMINOS DEL INCA 171, LIMA R5 33
Castro Raul Vaca	officer: General Auditor	1440 E. MISSOURI AVENUE, SUITE 160, PHOENIX AZ 85014
Chapa Ramon Leal	officer: Senior Vice President	1440 E. MISSOURI AVENUE, SUITE 160, PHOENIX AZ 85014
Quintanilla Daniel Muniz	director	C/O SOUTHERN COPPER CORPORATION, 11811 NORTH TATUM BLVD., SUITE 2500, PHOENIX AZ 85028
Mac Gregor Anciola Rafael	director	1440 E. MISSOURI AVENUE, STE. C160, PHOENIX AZ 85014
Lopez Abad Rafael F.	officer: General Auditor	1440 E. MISSOURI AVENUE, SUITE 160, PHOENIX AZ 85014
Lina Vingerhoets	officer: Comptroller	1440 E. MISSOURI AVENUE, SUITE 160, PHOENIX AZ 85014
Julian Jorge Lazalde	officer: Secretary	1440 E. MISSOURI AVENUE, SUITE 160, PHOENIX AZ 85014
Andres C Ferrero	officer: General Counsel	1440 E MISSOURI AVENUE, SUITE 160, PHOENIX AZ 85014
Oscar Gonzalez Rocha	director, officer: President