OGE Energy (OGE Energy) Interest Coverage : 1.57 (As of Dec. 2023)

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What is OGE Energy 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. OGE Energy's Operating Income for the three months ended in Dec. 2023 was $103 Mil. OGE Energy's Interest Expense for the three months ended in Dec. 2023 was $-66 Mil. OGE Energy's interest coverage for the quarter that ended in Dec. 2023 was 1.57. The higher the ratio, the stronger the company's financial strength is.

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

OGE' s Interest Coverage Range Over the Past 10 Years
Min: 2.87 Med: 3.38 Max: 3.84
Current: 2.87

OGE's Interest Coverage is ranked worse than
59.73% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs OGE: 2.87

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

OGE Energy Interest Coverage Historical Data

The historical data trend for OGE Energy'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.

OGE Energy Interest Coverage Chart

OGE Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.36

3.27

3.39

3.84

2.88

OGE Energy 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															2.10	1.60	2.50	5.77	1.57

Competitive Comparison of OGE Energy's Interest Coverage

For the Utilities - Regulated Electric subindustry, OGE Energy'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.

OGE Energy's Interest Coverage Distribution in the Utilities - Regulated Industry

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

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

OGE Energy 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.

OGE Energy'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, OGE Energy's Interest Expense was $-229 Mil. Its Operating Income was $657 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,341 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	657.3	/	-228.5
	=	2.88

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

Here, for the three months ended in Dec. 2023, OGE Energy's Interest Expense was $-66 Mil. Its Operating Income was $103 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,341 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	103.3	/	-65.6
	=	1.57

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

OGE Energy (NYSE:OGE) 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 .

OGE Energy Interest Coverage Related Terms

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

OGE Energy (OGE Energy) Business Description

Industry

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

Comparable Companies

PNW IDA POR PNM MGEE EVRG HE LNT GNE VIA NEE SO DUK LSE:NG. AEP PCG D BOM:532555 EXC PEG

Traded in Other Exchanges

OG5:Germany

Address

321 North Harvey, P.O. Box 321, Oklahoma, OK, USA, 73101-0321

Website

https://www.ogeenergy.com

OGE Energy is a holding company for Oklahoma Gas & Electric, a regulated utility with electricity generation, transmission, and distribution to 900,000 customers in Oklahoma and western Arkansas. In December 2021, OGE divested its 25.5% stake in Enable Midstream Partners, an oil and gas services company it created in 2013 through a unit exchange merger with Energy Transfer. OGE sold its 95.4 million limited partner units of Energy Transfer throughout 2022. OGE sold is retail gas business in 1928 and no longer has any gas operations.

Executives

David L Hauser	director	704-731-1522, CHARLOTTE NC 28209-4674
Cathy R. Gates	director	C/O TEMPUR SEALY INTERNATIONAL, INC., 1000 TEMPUR WAY, LEXINGTON KY 40511
David E Rainbolt	director	C/O BANCFIRST CORP, 100 N BROADWAY, OKLAHOMA CITY OK 73102
Whitfield Johnny W Jr	officer: VP Bus Intel, Supp Chain-OG&E	PO BOX 321, OKLAHOMA CITY OK 73101
Keith E Erickson	officer: VP Sales & Cust Oper (OG&E)	PO BOX 321, OKLAHOMA CITY OK 73101
Cristina F Mcquistion	officer: VP Process & Perf Improvement	P.O. BOX 321, OKLAHOMA CITY OK 73101
Patricia D Horn	officer: VP-Gov, Env; Corp Sec	PO BOX 321, OKLAHOMA CITY OK 73101
David A Parker	officer: VP- Tech, Data, Security-OG&E	PO BOX 321, OKLAHOMA CITY OK 73101
Kissam Luther C Iv	director	3801 BERESFORD ROAD, CHARLOTTE NC 28211
Christine Ostendorf Woodworth	officer: VP- Corp Com Brand & Marketing	C/O OGE ENERGY CORP., PO BOX 321, OKLAHOMA CITY OK 73101
J. Michael Sanner	director	3701 STONEHURST, JONES OK 73049
Scott A Briggs	officer: VP- Human Resources-OG&E	PO BOX 321, OKLAHOMA CITY OK 73103
Robert J Burch	officer: VP- Utility Technical Services	PO BOX 321, OKLAHOMA CITY OK 73101
Matthew J Schuermann	officer: VP- Power Supply Ops-OG&E	PO BOX 321, OKLAHOMA CITY OK 73101
William Bryan Buckler	officer: Chief Financial Officer	C/O OGE ENERGY CORP., PO BOX 321, OKLAHOMA CITY OK 73103