Newmont Goldcorp Corp (NEM)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,197,000 | 159,000 | 305,000 | 654,000 | 1,041,000 | 3,543,000 | 3,999,000 | 4,385,000 | 4,494,000 | 5,542,000 | 5,840,000 | 5,307,000 | 6,764,000 | 6,012,000 | 7,242,000 | 8,126,000 | 6,738,000 | 6,549,000 | 4,582,000 | 4,235,000 |
| Interest expense (ttm) | US$ in thousands | 277,000 | 215,000 | 222,000 | 230,000 | 227,000 | 240,000 | 251,000 | 262,000 | 274,000 | 281,000 | 290,000 | 300,000 | 308,000 | 271,000 | 206,000 | 210,000 | 186,000 | 204,000 | 245,000 | 212,000 |
| Interest coverage | -4.32 | 0.74 | 1.37 | 2.84 | 4.59 | 14.76 | 15.93 | 16.74 | 16.40 | 19.72 | 20.14 | 17.69 | 21.96 | 22.18 | 35.16 | 38.70 | 36.23 | 32.10 | 18.70 | 19.98 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,197,000K ÷ $277,000K
= -4.32
The interest coverage ratio for Newmont Corp has been fluctuating over the past eight quarters, ranging from a low of 5.98 in Q3 2022 to a high of 20.86 in Q3 2023. This ratio indicates the company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT). A higher ratio suggests that the company is more capable of servicing its interest payments from its operating earnings.
In the recent quarters, Newmont Corp has shown improved interest coverage ratios, with Q3 2023 standing out as a particularly strong performance at 20.86. This indicates a healthy ability to cover its interest expenses. However, it is important to monitor this ratio over time to ensure that the company's earnings remain sufficient to comfortably meet its interest obligations.