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HCC (Warrior Met Coal) Interest Coverage : 27.58 (As of Sep. 2024)


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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 Sep. 2024 was $39 Mil. Warrior Met Coal's Interest Expense for the three months ended in Sep. 2024 was $-1 Mil. Warrior Met Coal's interest coverage for the quarter that ended in Sep. 2024 was 27.58. 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: 77.03
Current: 77.03


HCC's Interest Coverage is ranked better than
89.6% of 471 companies
in the Steel industry
Industry Median: 6.07 vs HCC: 77.03

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.

* Premium members only.

Warrior Met Coal Interest Coverage Chart

Warrior Met Coal Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 13.07 - 8.19 26.63 30.61

Warrior Met Coal Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.63 81.21 133.17 77.60 27.58

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 Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Warrior Met Coal's Interest Expense was $-1 Mil. Its Operating Income was $39 Mil. And its Long-Term Debt & Capital Lease Obligation was $157 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*39.223/-1.422
=27.58

* 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.

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 Business Description

Traded in Other Exchanges
Address
16243 Highway 216, Brookwood, AL, USA, 35444
Warrior Met Coal Inc is a U.S based company. It produces and exports of met coal that operates 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. The Company generates ancillary revenues from the sale of natural gas extracted as a byproduct from the underground coal mines and royalty revenues from leased properties.
Executives
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
Alan H Schumacher director C/O QUALITY DISTRIBUTION, INC., 4041 PARK OAKS BOULEVARD, SUITE 200, TAMPA FL 33610
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
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 Special Opportunities Managed Account Lp 10 percent owner ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Apollo Svf Management, L.p. 10 percent owner TWO MANHATTANVILLE ROAD, PURCHASE NY 10577
Apollo Management Holdings Gp, Llc 10 percent owner 9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
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