Genesis Energy LP (Genesis Energy LP) Interest Coverage

: 1.13 (As of Dec. 2023)

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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. Genesis Energy LP's Operating Income for the three months ended in Dec. 2023 was $66 Mil. Genesis Energy LP's Interest Expense for the three months ended in Dec. 2023 was $-58 Mil. Genesis Energy LP's interest coverage for the quarter that ended in Dec. 2023 was 1.13. 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. Genesis Energy LP interest coverage is 1.4, which is low.

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

GEL' s Interest Coverage Range Over the Past 10 Years
Min: 0.27 Med: 1.25 Max: 2.14
Current: 1.4

GEL's Interest Coverage is ranked worse than
87.76% of 760 companies
in the Oil & Gas industry
Industry Median: 6.67 vs GEL: 1.40

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

Genesis Energy LP Interest Coverage Historical Data

The historical data trend for Genesis Energy LP'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.

Genesis Energy LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.24

0.27

0.32

1.26

1.40

Genesis Energy LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.66	0.84	1.73	1.89	1.13

Competitive Comparison

For the Oil & Gas Midstream subindustry, Genesis Energy LP'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.

Genesis Energy LP Interest Coverage Distribution

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

* The bar in red indicates where Genesis Energy LP's Interest Coverage falls into.

Genesis Energy LP 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.

Genesis Energy LP'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, Genesis Energy LP's Interest Expense was $-235 Mil. Its Operating Income was $329 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,753 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	329.42	/	-235.12
	=	1.40

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

Here, for the three months ended in Dec. 2023, Genesis Energy LP's Interest Expense was $-58 Mil. Its Operating Income was $66 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,753 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	65.561	/	-58.096
	=	1.13

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

Genesis Energy LP (NYSE:GEL) 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 .

Genesis Energy LP Interest Coverage Related Terms

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

Genesis Energy LP (Genesis Energy LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Genesis Energy LP (NYSE:GEL) » Definitions » Interest Coverage

Comparable Companies

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Traded in Other Exchanges

N/A

Address

811 Louisiana, Suite 1200, Houston, TX, USA, 77002

Website

https://www.genesisenergy.com

Genesis Energy LP is an us-based limited partnership that focuses on the midstream segment of the crude oil and natural gas industry. It engages in providing services to crude oil and natural gas producers, and industrial and commercial enterprises. The company's reportable segments are offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and transportation, and marine transportation. It generates maximum revenue from the offshore pipeline transportation segment. The Sodium minerals and sulfur services segment includes trona and trona-based exploring, mining, processing, producing, marketing, and selling activities, as well as processing high sulfur gas streams for refineries to remove the sulfur, and selling the related by-product.

Executives

Jeffrey J Rasmussen	officer: VP & GM - Refinery Services	811 LOUISIANA STREET, SUITE 1200, HOUSTON TX 77002
Edward T Flynn	officer: President, Genesis Alkali, LLC	1735 MARKET STREET, PHILADELPHIA PA 19103
Ryan S Sims	officer: Vice President	919 MILAM SUITE 2100, HOUSTON TX 77002
William W Rainsberger	officer: SVP - Offshore	919 MILAM SUITE 2100, HOUSTON TX 77002
Scott A Sims	officer: VP - Offshore	811 LOUISIANA STREET, SUITE 1200, HOUSTON TX 77002
Louis V Nicol	officer: SVP & Chief Accounting Officer	811 LOUISIANA STREET, SUITE 1200, HOUSTON TX 77002
James E Davison	director	2000 FARMERVILLE HIGHWAY, RUSTON LA 71270
Grant E Sims	director, officer: Chief Executive Officer	919 MILAM SUITE 2100, HOUSTON TX 77002
Garland G Gaspard	officer: Vice President	919 MILAM SUITE 2100, HOUSTON TX 77002
William Stanton Goloway	officer: Vice President	919 MILAM SUITE 2100, HOUSTON TX 77002
Albert Conrad P	director	919 MILAM SUITE 2100, HOUSTON TX 77002
Kristen O Jesulaitis	officer: General Counsel & Secretary	919 MILAM SUITE 2100, HOUSTON TX 77002
Davison James E. Jr.	director	500 SOUTH SERVICE ROAD EAST, RUSTON LA 71270
Richard R Alexander	officer: Vice President	919 MILAM SUITE 2100, HOUSTON TX 77002
Sharilyn S Gasaway	director	ONE ALLIED DRIVE, LITTLE ROCK AR 72202