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Enel SpA (Enel SpA) Interest Coverage : 54.47 (As of Dec. 2023)


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What is Enel 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. Enel SpA's Operating Income for the three months ended in Dec. 2023 was $5,465 Mil. Enel SpA's Interest Expense for the three months ended in Dec. 2023 was $-100 Mil. Enel SpA's interest coverage for the quarter that ended in Dec. 2023 was 54.47. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Enel SpA interest coverage is 2.54, which is low.

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

ENLAY' s Interest Coverage Range Over the Past 10 Years
Min: 1.7   Med: 3.66   Max: 7.72
Current: 2.54


ENLAY's Interest Coverage is ranked worse than
66.52% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.695 vs ENLAY: 2.54

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


Enel SpA Interest Coverage Historical Data

The historical data trend for Enel 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.

* Premium members only.

Enel SpA Interest Coverage Chart

Enel SpA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.51 4.40 7.72 5.18 2.54

Enel SpA 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 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 - 0.20 - 0.42 54.47

Competitive Comparison of Enel SpA's Interest Coverage

For the Utilities - Diversified subindustry, Enel 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.


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

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

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



Enel 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.

Enel SpA'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, Enel SpA's Interest Expense was $-6,506 Mil. Its Operating Income was $16,502 Mil. And its Long-Term Debt & Capital Lease Obligation was $66,614 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*16501.636/-6505.998
=2.54

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

Here, for the three months ended in Dec. 2023, Enel SpA's Interest Expense was $-100 Mil. Its Operating Income was $5,465 Mil. And its Long-Term Debt & Capital Lease Obligation was $66,614 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*5464.558/-100.327
=54.47

* 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.


Enel SpA  (OTCPK:ENLAY) 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 .


Enel SpA Interest Coverage Related Terms

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


Enel SpA (Enel SpA) Business Description

Address
Viale Regina Margherita, 137, Rome, ITA, 00198
Enel is a diversified energy company domiciled in Italy. Operations are concentrated in Italy, Spain, and Latin America. The firm's primary activities are electric generation, electric networks, and gas and electricity marketing. Around 50% of the company's EBITDA is derived from its regulated networks. Taking into account power sold through power purchase agreements in Latin America, around 70% of EBITDA is quasi-regulated. Enel is a giant in global power generation with 86 gigawatts of capacity, of which 39 GW is renewables, including a large share of hydro.

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