Orlen (WAR:PKN) Interest Coverage : 47.09 (As of Dec. 2023)

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What is Orlen 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. Orlen's Operating Income for the three months ended in Dec. 2023 was zł15,916 Mil. Orlen's Interest Expense for the three months ended in Dec. 2023 was zł-338 Mil. Orlen's interest coverage for the quarter that ended in Dec. 2023 was 47.09. The higher the ratio, the stronger the company's financial strength is.

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

WAR:PKN' s Interest Coverage Range Over the Past 10 Years
Min: 1.81 Med: 26.48 Max: 43.37
Current: 42.57

WAR:PKN's Interest Coverage is ranked better than
80.16% of 761 companies
in the Oil & Gas industry
Industry Median: 6.59 vs WAR:PKN: 42.57

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

Orlen Interest Coverage Historical Data

The historical data trend for Orlen'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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Orlen Interest Coverage Chart

Orlen Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

19.05

19.74

43.37

42.33

Orlen Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															40.37	50.70	23.60	45.07	47.09

Competitive Comparison of Orlen's Interest Coverage

For the Oil & Gas Integrated subindustry, Orlen'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.

Orlen's Interest Coverage Distribution in the Oil & Gas Industry

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

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

Orlen 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.

Orlen'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, Orlen's Interest Expense was zł-943 Mil. Its Operating Income was zł39,920 Mil. And its Long-Term Debt & Capital Lease Obligation was zł20,014 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	39920	/	-943
	=	42.33

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

Here, for the three months ended in Dec. 2023, Orlen's Interest Expense was zł-338 Mil. Its Operating Income was zł15,916 Mil. And its Long-Term Debt & Capital Lease Obligation was zł20,014 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	15916	/	-338
	=	47.09

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

Orlen (WAR:PKN) 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 .

Orlen Interest Coverage Related Terms

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

Orlen (WAR:PKN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Orlen SA (WAR:PKN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PSKOF:USA 0FMN:UK PKY1:Germany PKN:Czech Republic

Address

Chemikow 7 Street, Plock, POL, 09-411

Website

https://www.orlen.pl

Orlen SA is an energy conglomerate that refines and distributes oil in Poland, the Czech Republic, Germany, and Lithuania. Through a group of refineries, it processes crude oil into gasoline, diesel oil, fuel oil, and aviation fuel. The company also produces petrochemicals and products used by chemical companies as feedstock. Additional operations include exploration and production activities in Poland, where it is domiciled, and Canada. Oil products are offered through thousands of service stations, which is supported by logistics infrastructure. This infrastructure includes surface and underground storage depots and a long-distance pipeline network.