Cool Co (OSL:CLCO) Interest Coverage : 2.69 (As of Dec. 2023)

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What is Cool Co 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. Cool Co's Operating Income for the three months ended in Dec. 2023 was kr581 Mil. Cool Co's Interest Expense for the three months ended in Dec. 2023 was kr-216 Mil. Cool Co's interest coverage for the quarter that ended in Dec. 2023 was 2.69. The higher the ratio, the stronger the company's financial strength is.

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

OSL:CLCO' s Interest Coverage Range Over the Past 10 Years
Min: 2.45 Med: 3.13 Max: 3.75
Current: 2.45

OSL:CLCO's Interest Coverage is ranked worse than
79.11% of 761 companies
in the Oil & Gas industry
Industry Median: 6.59 vs OSL:CLCO: 2.45

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

Cool Co Interest Coverage Historical Data

The historical data trend for Cool Co'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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Cool Co Interest Coverage Chart

Cool Co Annual Data

Trend

Dec21

Dec22

Dec23

Interest Coverage

3.75

N/A

2.51

Cool Co Quarterly Data
	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial			4.29	N/A	2.29	2.37	2.69

Competitive Comparison of Cool Co's Interest Coverage

For the Oil & Gas Midstream subindustry, Cool Co'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.

Cool Co's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Cool Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cool Co's Interest Coverage falls into.

Cool Co 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.

Cool Co'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, Cool Co's Interest Expense was kr-846 Mil. Its Operating Income was kr2,119 Mil. And its Long-Term Debt & Capital Lease Obligation was kr9,174 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2119.301	/	-845.956
	=	2.51

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

Here, for the three months ended in Dec. 2023, Cool Co's Interest Expense was kr-216 Mil. Its Operating Income was kr581 Mil. And its Long-Term Debt & Capital Lease Obligation was kr9,174 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	580.734	/	-215.872
	=	2.69

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

Cool Co (OSL:CLCO) 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 .

Cool Co Interest Coverage Related Terms

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

Cool Co (OSL:CLCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Cool Co Ltd (OSL:CLCO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CLCO:USA HQ3:Germany HQ3:Germany

Address

9 Par-La-Ville Road, 2nd Floor, S.E. Pearman Building, Hamilton, BMU, HM 11

Website

https://www.coolcoltd.com

Cool Co Ltd is a LNG shipping company. The company operates and manages the fuel-efficient LNGCs providing critical supply chain support to the international energy industry and flexible LNG transportation solutions, providing a lesser-emitting form of energy to help enable decarbonization efforts. Geographical presence of the company is in Singapore, Europe, Asia, Dutch, Japan and other International LNG trader.