Newmont Goldcorp Corp (NEM)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -1,847,000 | 129,000 | 2,338,000 | 3,594,000 | 3,697,000 |
| Interest expense | US$ in thousands | 121,000 | 103,000 | 74,000 | 61,000 | 60,000 |
| Interest coverage | -15.26 | 1.25 | 31.59 | 58.92 | 61.62 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-1,847,000K ÷ $121,000K
= -15.26
The interest coverage ratio for Newmont Corp has exhibited fluctuations over the past five years. In 2023, the interest coverage ratio was 8.12, lower than the ratios recorded in 2022 and 2020, but a slight improvement compared to 2021. This implies that Newmont Corp's ability to cover its interest expenses with its earnings decreased in 2023. However, the company's interest coverage in 2023 remains at a relatively healthy level, indicating that Newmont Corp generated sufficient earnings to comfortably meet its interest obligations despite the decrease. It is essential for investors and creditors to monitor changes in the interest coverage ratio to assess the company's financial health and its ability to service its debt obligations going forward.