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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. PNM Resources's Operating Income for the three months ended in Dec. 2023 was $19 Mil. PNM Resources's Interest Expense for the three months ended in Dec. 2023 was $-54 Mil. PNM Resources's interest coverage for the quarter that ended in Dec. 2023 was 0.36. 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. PNM Resources Inc interest coverage is 1.59, which is low.
The historical rank and industry rank for PNM Resources's Interest Coverage or its related term are showing as below:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
The historical data trend for PNM Resources'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.
PNM Resources Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Interest Coverage | Get a 7-Day Free Trial | 2.44 | 2.50 | 3.19 | 3.08 | 1.59 |
PNM Resources 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 | 1.49 | 2.42 | 2.09 | 1.79 | 0.36 |
For the Utilities - Regulated Electric subindustry, PNM Resources'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.
For the Utilities - Regulated industry and Utilities sector, PNM Resources's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PNM Resources's Interest Coverage falls into.
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.
PNM Resources'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, PNM Resources's Interest Expense was $-190 Mil. Its Operating Income was $303 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,409 Mil.
Interest Coverage | = | -1 | * | Operating Income (A: Dec. 2023 ) | / | Interest Expense (A: Dec. 2023 ) |
= | -1 | * | 303.263 | / | -190.355 | |
= | 1.59 |
PNM Resources's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as
Here, for the three months ended in Dec. 2023, PNM Resources's Interest Expense was $-54 Mil. Its Operating Income was $19 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,409 Mil.
Interest Coverage | = | -1 | * | Operating Income (Q: Dec. 2023 ) | / | Interest Expense (Q: Dec. 2023 ) |
= | -1 | * | 19.144 | / | -53.695 | |
= | 0.36 |
* 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.
PNM Resources (NYSE:PNM) 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 .
Thank you for viewing the detailed overview of PNM Resources's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Elisabeth A Eden | officer: SVP, CFO & Treasurer | 414 SILVER AVE SW, MS1295, ALBUQUERQUE NM 87102 |
Henry E Monroy | officer: VP & Corporate Controller | 414 SILVER AVENUE SW, MS1015, ALBUQUERQUE NM 87102-3289 |
Charles N Eldred | officer: Chief Financial Officer | 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289 |
Joseph Don Tarry | officer: VP and Corporate Controller | 414 SILVER AVE SW MS 1205, ALBUQUERQUE NM 87102-3289 |
Patrick V Apodaca | officer: SR VP, GEN COUNSEL & SECY | 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289 |
Ronald N. Darnell | officer: VICE PRESIDENT, REGULATORY AFF | 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289 |
Vicky A Bailey | director | 2099 PENNSYLVANIA AVNUE, NW, SUITE 1000, WASHINGTON DC 20006 |
James Alton Hughes | director | 350 W WASHINGTON STREET, SUITE 600, TEMPE AZ 85281 |
Norman P. Becker | director | 3900 SINGER BOULEVARD N.E., ALBUQUERQUE NM 87109 |
Chris M Olson | officer: VP, Utility Operations | 414 SILVER AVENUE SW, MS 1255, ALBUQUERQUE NM 87102-3289 |
Adelmo E Archuleta | director | 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289 |
Ronald E Talbot | officer: SR VP, CHIEF OPERATING OFFICER | 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289 |
Bruce W Wilkinson | director | 1333 WEST LOOP SOUTH, STE 1700, HOUSTON TX 77027 |
Sidney M. Gutierrez | director | 414 SILVER AVE SW, MS 1275, ALBUQUERQUE NM 87102-3289 |
Joan B Woodard | director | 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289 |
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