Newmont Goldcorp Corp (NEM)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,916,000 | -216,000 | -1,081,000 | -1,871,000 | -1,788,000 | -97,000 | -92,000 | 24,000 | 110,000 | 310,000 | 23,000 | 571,000 | 700,000 | 2,837,000 | 3,794,000 | 3,289,000 | 3,331,000 | 3,028,000 | 4,928,000 | 4,522,000 |
| Interest expense (ttm) | US$ in thousands | 375,000 | 363,000 | 325,000 | 271,000 | 243,000 | 215,000 | 222,000 | 230,000 | 227,000 | 240,000 | 251,000 | 262,000 | 274,000 | 281,000 | 290,000 | 300,000 | 308,000 | 319,000 | 321,000 | 325,000 |
| Interest coverage | 13.11 | -0.60 | -3.33 | -6.90 | -7.36 | -0.45 | -0.41 | 0.10 | 0.48 | 1.29 | 0.09 | 2.18 | 2.55 | 10.10 | 13.08 | 10.96 | 10.81 | 9.49 | 15.35 | 13.91 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,916,000K ÷ $375,000K
= 13.11
Newmont Goldcorp Corp's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio, which indicates the company's ability to meet its interest obligations with its operating income, started at a healthy level of 13.91 as of March 31, 2020, and improved to 15.35 by June 30, 2020. However, there was a decline in the ratio to 9.49 as of September 30, 2020, and then a recovery to 10.81 by December 31, 2020.
Throughout 2021, the interest coverage ratio remained relatively stable around the 10-13 range, indicating that the company was comfortably covering its interest payments. However, starting from December 31, 2021, the ratio experienced a sharp decline, reaching a low of 0.09 as of June 30, 2022. This significant drop may suggest challenges in generating sufficient operating income to cover interest expenses during this period.
The trend continued into 2023 and 2024, with the interest coverage ratio plunging into negative territory, indicating that the company's operating income was insufficient to cover its interest obligations. Specifically, by December 31, 2024, the interest coverage ratio had improved to a positive figure of 13.11, a substantial recovery from the negative values seen in the previous periods.
Overall, the analysis of Newmont Goldcorp Corp's interest coverage ratio reveals a mix of stable performance and periods of financial strain, with fluctuations indicating changing financial health and potential challenges in meeting interest payments during certain quarters.