Tronox Holdings (Tronox Holdings) Interest Coverage

: 0.22 (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. Tronox Holdings's Operating Income for the three months ended in Dec. 2023 was $8 Mil. Tronox Holdings's Interest Expense for the three months ended in Dec. 2023 was $-36 Mil. Tronox Holdings's interest coverage for the quarter that ended in Dec. 2023 was 0.22. The higher the ratio, the stronger the company's financial strength is.

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

TROX' s Interest Coverage Range Over the Past 10 Years
Min: 0.2 Med: 1.26 Max: 4.5
Current: 1.25

TROX's Interest Coverage is ranked worse than
92.03% of 1192 companies
in the Chemicals industry
Industry Median: 9.705 vs TROX: 1.25

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

Tronox Holdings Interest Coverage Historical Data

The historical data trend for Tronox Holdings'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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Tronox Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.61

1.55

3.99

4.50

1.25

Tronox Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																0.80	1.88	2.21	0.76	0.22

Competitive Comparison

For the Chemicals subindustry, Tronox Holdings'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.

Tronox Holdings Interest Coverage Distribution

For the Chemicals industry and Basic Materials sector, Tronox Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tronox Holdings's Interest Coverage falls into.

Tronox Holdings 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.

Tronox Holdings'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, Tronox Holdings's Interest Expense was $-149 Mil. Its Operating Income was $186 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,889 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	186	/	-149
	=	1.25

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

Here, for the three months ended in Dec. 2023, Tronox Holdings's Interest Expense was $-36 Mil. Its Operating Income was $8 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,889 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	8	/	-36
	=	0.22

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

Tronox Holdings (NYSE:TROX) 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 .

Tronox Holdings Interest Coverage Related Terms

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

Tronox Holdings (Tronox Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Tronox Holdings PLC (NYSE:TROX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

T5X:Germany

Address

263 Tresser Boulevard, Suite 1100, Stamford, CT, USA, 06901

Website

https://www.tronox.com

Tronox Holdings PLC is a vertically integrated manufacturer of TiO2 pigment. It operates titanium-bearing mineral sand mines and beneficiation and smelting operations in Australia & South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high-purity titanium chemicals, including titanium tetrachloride, and ultrafine TiO2 used in certain specialty applications. TiO2 and titanium feedstock, are used to produce paints and coatings, as well as plastics, paper, and printing ink. It has three pigment production facilities in the United States, the Netherlands, and Western Australia and three mining operations in Western Australia and South Africa. North America, Europe, the Middle East, and Africa, and Asia-Pacific regions contribute the vast majority of revenue.

Executives

Vanessa Ann Guthrie	director	263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Stephen J Jones	director	7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501
Mutlaq Hamad Al-morished	director	263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Moazzam A. Khan	director	263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Timothy C Carlson	officer: Senior Vice President, CFO	263 TRESSER BOULEVARD, SUITE 1100, STAMFORD CT 06901
Jonathan Flood	officer: Principal Accounting Officer	263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Jean Francois Turgeon	officer: Executive Vice President	263 TRESSER BOULEVARD, STAMFORD CT 06901
John D Romano	officer: SVP, Chief Commercial Officer	P. O. BOX 268859, OKLAHOMA CITY OK 73126
Jeffrey N Neuman	officer: SVP, General Counsel & Sec.	115 TABOR ROAD, MORRIS PLAINS NJ 07950
John Srivisal	officer: SVP, Business Dev. and Finance	C/O TRONOX HOLDINGS PLC, 263 TRESSER BOULEVARD, SUITE 1100, STAMFORD CT 06901
Sipho Abednego Nkosi	director	EXXARO RESOURCES LTD, P.O. BOX 9229, PRETORIA T3 0001
Raoul Charles Mancini	officer: SVP, Chief HR Officer	410 PARK AVE.; SUITE 1400, NEW YORK NY 10022
Ilan Kaufthal	director	143 E LINDEN AVE, ENGLEWOOD NJ 07631
Wayne A Hinman	director	TRONOX LIMITED, ONE STAMFORD PLAZA, 263 TRESSER BLVD., SUITE 1100, STAMFORD CT 06901
Jeffry N Quinn	director	12935 NORTH FORTY DRIVE, SUITE 201, ST. LOUIS MO 63141