AGL Resources (AGL Resources) Interest Coverage : 7.40 (As of Mar. 2016)

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What is AGL 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. AGL Resources's Operating Income for the three months ended in Mar. 2016 was $348 Mil. AGL Resources's Interest Expense for the three months ended in Mar. 2016 was $-47 Mil. AGL Resources's interest coverage for the quarter that ended in Mar. 2016 was 7.40. The higher the ratio, the stronger the company's financial strength is.

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

GAS's Interest Coverage is not ranked ^*
in the Utilities - Regulated industry.
Industry Median: 3.76
* Ranked among companies with meaningful Interest Coverage only.

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

AGL Resources Interest Coverage Historical Data

The historical data trend for AGL 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.

* Premium members only.

AGL Resources Interest Coverage Chart

AGL Resources Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

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3.24

3.32

3.79

6.12

4.31

AGL Resources Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Interest Coverage	Get a 7-Day Free Trial															8.27	2.55	1.40	4.80	7.40

Competitive Comparison of AGL Resources's Interest Coverage

For the Utilities - Regulated Gas subindustry, AGL 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.

AGL Resources's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, AGL Resources's Interest Coverage distribution charts can be found below:

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

AGL 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.

AGL Resources's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, AGL Resources's Interest Expense was $-173 Mil. Its Operating Income was $746 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,275 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	746	/	-173
	=	4.31

AGL Resources's Interest Coverage for the quarter that ended in Mar. 2016 is calculated as

Here, for the three months ended in Mar. 2016, AGL Resources's Interest Expense was $-47 Mil. Its Operating Income was $348 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,273 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2016 )	/	Interest Expense (Q: Mar. 2016 )
	=	-1	*	348	/	-47
	=	7.40

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

AGL Resources (NYSE:GAS) 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 .

AGL Resources Interest Coverage Related Terms

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

AGL Resources (AGL Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » AGL Resources Inc (NYSE:GAS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.aglresources.com

AGL Resources Inc was incorporated on November 27, 1995 under the laws of the State of Georgia. It is an energy services holding company. The Company is engaged in the distribution of natural gas in seven states; Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee and Maryland through its seven natural gas distribution utilities. The Company's business segments are Distribution Operations, Retail Operations, Wholesale Services and Midstream Operations. The distribution operations segment includes seven natural gas local distribution utilities with a focus of providing safe and reliable delivery of natural gas. The retail operations segment serves natural gas commodity customers and service contracts. The wholesale services segment is engaged in asset management and optimization, storage, transportation, producer and peaking services and wholesale marketing of natural gas across the U.S. and Canada. Wholesale services utilizes a portfolio of natural gas storage assets, contracted supply from all of the main producing regions, as well as contracted storage and transportation capacity to provide these services to its customers. The midstream operations segment includes a number of businesses that are related and complementary to its primary business. The Company competes with electric utilities and fuel oil and propane providers serving the residential, commercial and industrial markets and natural gas facilities. The Company's business is subject to substantial regulation by federal, state and local regulatory authorities.

Executives

Bettina M Whyte	director	9 W 57TH ST 34TH FLR, NEW YORK NY 10019
Dennis M Love	director	TEN PEACHTREE PLACE, DEPT. 1466, ATLANTA GA 30309
Dean R Ohare	director	15 MOUNTAIN VIEW ROAD, WARREN NJ 07059
Norman Bobins	director	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Brenda J Gaines	director	1445 ROSS AVENUE, SUITE 1400, DALLAS TX 75202
James A Rubright	director	3435 WOODHAVEN RD NW, ATLANTA GA 30305
Sandra N Bane	director
Henry C Wolf	director	NORFOLK SOUTHERN CORP, THREE COMMERCIAL PLACE, NORFOLK VA 23510-9219
Andrew W Evans	director, officer: President & CEO	TEN PEACHTREE PLACE, LOC. 1466, ATLANTA GA 30309
Charles R Crisp	director	1301 MCKINNEY STE 700, HOUSTON TX 77010
Bell Thomas D Jr	director
Armando J Olivera	director	C/O FLUOR CORPORATION, 6700 LAS COLINAS BLVD, IRVING TX 75039
Arthur E Johnson	director	IKON OFFICE SOLUTIONS INC, 70 VALLEY STREAM PARKWAY, MALVERN PA 19355
John Rau	director	MIAMI CORPORATION, 410 N. MICHIGAN AVENUE, ROOM 590, CHICAGO IL 60611
Somerhalder John W Ii	director, officer: Chairman and CEO	76 SOUTH MAIN STREET, AKRON OH 44308