DVCMY (Davide Campari-Milano NV) Interest Coverage : 6.83 (As of Jun. 2024)

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What is Davide Campari-Milano NV 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. Davide Campari-Milano NV's Operating Income for the three months ended in Jun. 2024 was $201 Mil. Davide Campari-Milano NV's Interest Expense for the three months ended in Jun. 2024 was $-29 Mil. Davide Campari-Milano NV's interest coverage for the quarter that ended in Jun. 2024 was 6.83. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Davide Campari-Milano NV's Interest Coverage or its related term are showing as below:

DVCMY' s Interest Coverage Range Over the Past 10 Years
Min: 4.91 Med: 8.95 Max: 17.48
Current: 5.8

DVCMY's Interest Coverage is ranked worse than
61.88% of 160 companies
in the Beverages - Alcoholic industry
Industry Median: 8.9 vs DVCMY: 5.80

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

Davide Campari-Milano NV Interest Coverage Historical Data

The historical data trend for Davide Campari-Milano NV'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.

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Davide Campari-Milano NV Interest Coverage Chart

Davide Campari-Milano NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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9.35

6.52

14.16

17.48

8.55

Davide Campari-Milano NV Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															7.16	5.01	5.78	6.83	5.40

Competitive Comparison of Davide Campari-Milano NV's Interest Coverage

For the Beverages - Wineries & Distilleries subindustry, Davide Campari-Milano NV'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.

Davide Campari-Milano NV's Interest Coverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Davide Campari-Milano NV's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Davide Campari-Milano NV's Interest Coverage falls into.

Davide Campari-Milano NV 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.

Davide Campari-Milano NV'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, Davide Campari-Milano NV's Interest Expense was $-77 Mil. Its Operating Income was $660 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,971 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	660.087	/	-77.208
	=	8.55

Davide Campari-Milano NV's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Davide Campari-Milano NV's Interest Expense was $-29 Mil. Its Operating Income was $201 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,717 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2024 )	/	Interest Expense (Q: Jun. 2024 )
	=	-1	*	200.646	/	-29.386
	=	6.83

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

Davide Campari-Milano NV (OTCPK:DVCMY) 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 .

Davide Campari-Milano NV Interest Coverage Related Terms

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Davide Campari-Milano NV Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Davide Campari-Milano NV (OTCPK:DVCMY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DVDCF:USA CPR:Italy CPRm:UK 0ROY:UK 58H:Germany

Address

Via Franco Sacchetti 20, Sesto San Giovanni, Milan, ITA, 20099

Website

https://www.camparigroup.com

Davide Campari-Milano, or Campari, is the Italian-headquartered parent of the Campari Group and is the world's leading manufacturer of liqueurs, according to Euromonitor, with a volume share of 10% in 2022. The company's liqueur portfolio includes aperitifs Aperol, Campari, Cinzano Vermouth, and Grand Marnier. The remainder of the portfolio spans a wide range of categories, including global priority brands Skyy vodka and Wild Turkey bourbon, and niche brands such as Appleton Estate Rum, Bulldog gin, and Espolon tequila. Campari also produces and markets a range of champagne and sparkling wines.Campari is controlled by Lagfin S.C.A., a Luxembourg-based holding company, which holds 54% of the share capital and over 60% of the voting rights. A further 43% of the equity is free float.