Italgas SpA (MIL:IG) Interest Coverage : 7.80 (As of Jun. 2023)

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What is Italgas SpA 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. Italgas SpA's Operating Income for the six months ended in Jun. 2023 was €377 Mil. Italgas SpA's Interest Expense for the six months ended in Jun. 2023 was €-48 Mil. Italgas SpA's interest coverage for the quarter that ended in Jun. 2023 was 7.80. The higher the ratio, the stronger the company's financial strength is.

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

MIL:IG' s Interest Coverage Range Over the Past 10 Years
Min: 0.24 Med: 10.93 Max: 14.11
Current: 6.94

MIL:IG's Interest Coverage is ranked better than
66.74% of 445 companies
in the Utilities - Regulated industry
Industry Median: 3.77 vs MIL:IG: 6.94

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

Italgas SpA Interest Coverage Historical Data

The historical data trend for Italgas SpA'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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Italgas SpA Interest Coverage Chart

Italgas SpA Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

8.25

13.11

10.93

11.60

6.94

Italgas SpA Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial										14.14	12.37	10.97	7.80	6.10

Competitive Comparison of Italgas SpA's Interest Coverage

For the Utilities - Regulated Gas subindustry, Italgas SpA'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.

Italgas SpA's Interest Coverage Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where Italgas SpA's Interest Coverage falls into.

Italgas SpA 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.

Italgas SpA's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Italgas SpA's Interest Expense was €-53 Mil. Its Operating Income was €617 Mil. And its Long-Term Debt & Capital Lease Obligation was €6,403 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	616.701	/	-53.145
	=	11.60

Italgas SpA's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the six months ended in Jun. 2023, Italgas SpA's Interest Expense was €-48 Mil. Its Operating Income was €377 Mil. And its Long-Term Debt & Capital Lease Obligation was €6,476 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	376.898	/	-48.33
	=	7.80

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

Italgas SpA (MIL:IG) 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 .

Italgas SpA Interest Coverage Related Terms

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

Italgas SpA (MIL:IG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Italgas SpA (MIL:IG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ITGGF:USA IGm:UK 0RK1:UK I10:Germany

Address

Via Carlo Bo 11, Milano, ITA, 20143

Website

https://www.italgas.it

Italgas SpA is an Italy-based company engaged in the business of natural gas distribution. The distribution service consists of transporting gas through local pipeline networks, from points of delivery at the reduction and measurement stations interconnected with the transport networks up to the final delivery points to customers. In addition, the company is also engaged in metering activities, which consist of determining, gathering, making available, and archiving metering data on natural gas withdrawn over the distribution networks. It derives a majority of the revenue from natural gas distribution activity. The other activities of the company are the distribution and sale of water and providing technical, engineering, IT assistance, and other services.

Italgas SpA (MIL:IG) Headlines

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