Vectren (Vectren) Interest Coverage : 3.55 (As of Sep. 2018)

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What is Vectren 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. Vectren's Operating Income for the three months ended in Sep. 2018 was $87 Mil. Vectren's Interest Expense for the three months ended in Sep. 2018 was $-25 Mil. Vectren's interest coverage for the quarter that ended in Sep. 2018 was 3.55. The higher the ratio, the stronger the company's financial strength is.

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

VVC'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.

Vectren Interest Coverage Historical Data

The historical data trend for Vectren'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.

Vectren Interest Coverage Chart

Vectren Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Interest Coverage

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3.82

3.63

4.30

4.51

3.68

Vectren Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Interest Coverage	Get a 7-Day Free Trial															4.84	1.70	3.59	2.95	3.55

Competitive Comparison of Vectren's Interest Coverage

For the Utilities - Regulated Gas subindustry, Vectren'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.

Vectren's Interest Coverage Distribution in the Utilities - Regulated Industry

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

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

Vectren 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.

Vectren's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Vectren's Interest Expense was $-87 Mil. Its Operating Income was $318 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,739 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2017 )	/	Interest Expense (A: Dec. 2017 )
	=	-1	*	318.4	/	-86.5
	=	3.68

Vectren's Interest Coverage for the quarter that ended in Sep. 2018 is calculated as

Here, for the three months ended in Sep. 2018, Vectren's Interest Expense was $-25 Mil. Its Operating Income was $87 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,979 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2018 )	/	Interest Expense (Q: Sep. 2018 )
	=	-1	*	87.4	/	-24.6
	=	3.55

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

Vectren (NYSE:VVC) 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 .

Vectren Interest Coverage Related Terms

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

Vectren (Vectren) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Vectren Corp (NYSE:VVC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.vectren.com

Vectren Corp is an energy holding company whose principal business is the ownership of energy utility companies in the American state of Indiana. Vectren Corp has three wholly owned subsidiaries: Indiana Gas Company, Southern Indiana Gas and Electric Company (SIGECO), and Vectren Energy Delivery of Ohio (VEDO). The company derives roughly half of its total revenue from both the natural gas and electricity distribution services provided by SIGECO and VEDO to primarily residential and commercial consumers in Indiana. Vectren Corp's Infrastructure Services business represents the other half of its total revenue generation. Within this unit, the company provides underground pipeline construction and repair services to utilities companies, such as its own subsidiaries.

Executives

Teresa J. Tanner	director	38 FOUNTAIN SQUARE PLAZA, MD 10AT76, CINCINNATI OH 45263
Michael L Smith	director	C/O AGILON HEALTH, INC., 6210 E HWY 290, SUITE 450, AUSTIN TX 78723
M Susan Hardwick	officer: EVP & Chief Financial Officer	C/O AMERICAN WATER WORKS COMPANY, INC., 1 WATER STREET, CAMDEN NJ 08102-1658
Robert G Jones	director	OLD NATIONAL BANCORP, ONE MAIN STREET, EVANSVILLE IN 47708
Jean L Wojtowicz	director	C/O VECTREN CORP, 20 NW FOURTH STREET, EVANVILLE IN 47711
Anton H George	director	C/O VECTREN CORP, 20 NW FOURTH STREET, EVANVILLE IN 47711
Degraffenreidt James H Jr	director	1100 H ST NW, WASHINGTON DC 20080
Martin C Jischke	director	1031 HOVDE HALL, W LAFAYETTE IN 47907
Niel C Ellerbrook	director	C/O OLD NATIONAL BANCORP, ONE MAIN STREET, EVANVILLE IN 47708
William G Mays	director	WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Koch Robert L Ii	director