Speedy Hire (LSE:SDY) Interest Coverage : 1.92 (As of Sep. 2023)

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What is Speedy Hire 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. Speedy Hire's Operating Income for the six months ended in Sep. 2023 was £11.3 Mil. Speedy Hire's Interest Expense for the six months ended in Sep. 2023 was £-5.9 Mil. Speedy Hire's interest coverage for the quarter that ended in Sep. 2023 was 1.92. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Speedy Hire's Interest Coverage or its related term are showing as below:

LSE:SDY' s Interest Coverage Range Over the Past 10 Years
Min: 0.41 Med: 3.02 Max: 7.63
Current: 0.41

LSE:SDY's Interest Coverage is ranked worse than
98.23% of 793 companies
in the Business Services industry
Industry Median: 13.27 vs LSE:SDY: 0.41

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

Speedy Hire Interest Coverage Historical Data

The historical data trend for Speedy Hire'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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Speedy Hire Interest Coverage Chart

Speedy Hire Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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5.20

1.28

2.90

6.94

0.99

Speedy Hire Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial															6.33	7.63	4.48	-	1.92

Competitive Comparison of Speedy Hire's Interest Coverage

For the Rental & Leasing Services subindustry, Speedy Hire'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.

Speedy Hire's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Speedy Hire's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Speedy Hire's Interest Coverage falls into.

Speedy Hire 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.

Speedy Hire's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Speedy Hire's Interest Expense was £-7.9 Mil. Its Operating Income was £7.8 Mil. And its Long-Term Debt & Capital Lease Obligation was £156.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	7.8	/	-7.9
	=	0.99

Speedy Hire's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Speedy Hire's Interest Expense was £-5.9 Mil. Its Operating Income was £11.3 Mil. And its Long-Term Debt & Capital Lease Obligation was £157.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	11.3	/	-5.9
	=	1.92

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

Speedy Hire (LSE:SDY) 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 .

Speedy Hire Interest Coverage Related Terms

Thank you for viewing the detailed overview of Speedy Hire's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Speedy Hire (LSE:SDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Speedy Hire PLC (LSE:SDY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SDYl:UK SDY.GB:UK 5HN:Germany

Address

Chase House, 16 The Parks, Newton-le-Willows, Merseyside, GBR, WA12 0JQ

Website

https://www.speedyservices.com

Speedy Hire PLC is a UK-based company engaged in the provision of equipment for hire and sale and associated services to construction, infrastructure, industry, and related industries. It delivers asset management with tailored services and a continued commitment to relationship management. It generates revenue from Hire and related activities followed by services provided. The company's geographical segments are the United Kingdom and Ireland, of which the majority of its revenue comes from the United Kingdom.