Karnell Group AB (OSTO:KARNEL B) Interest Coverage : 1.58 (As of Mar. 2024)

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What is Karnell Group AB 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. Karnell Group AB's Operating Income for the three months ended in Mar. 2024 was kr16.9 Mil. Karnell Group AB's Interest Expense for the three months ended in Mar. 2024 was kr-10.7 Mil. Karnell Group AB's interest coverage for the quarter that ended in Mar. 2024 was 1.58. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Karnell Group AB's Interest Coverage or its related term are showing as below:

OSTO:KARNEL B' s Interest Coverage Range Over the Past 10 Years
Min: 1.58 Med: 3.27 Max: 5.07
Current: 1.58

OSTO:KARNEL B's Interest Coverage is ranked worse than
87.97% of 449 companies
in the Asset Management industry
Industry Median: 40.02 vs OSTO:KARNEL B: 1.58

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

Karnell Group AB Interest Coverage Historical Data

The historical data trend for Karnell Group AB'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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Karnell Group AB Interest Coverage Chart

Karnell Group AB Annual Data

Trend

Dec21

Dec22

Dec23

Interest Coverage

3.27

5.07

3.20

Karnell Group AB Quarterly Data
	Dec21	Dec22	Mar23	Dec23	Mar24
Interest Coverage	N/A	N/A	4.69	N/A	1.58

Competitive Comparison of Karnell Group AB's Interest Coverage

For the Asset Management subindustry, Karnell Group AB'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.

Karnell Group AB's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Karnell Group AB's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Karnell Group AB's Interest Coverage falls into.

Karnell Group AB 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.

Karnell Group AB'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, Karnell Group AB's Interest Expense was kr-53.1 Mil. Its Operating Income was kr170.1 Mil. And its Long-Term Debt & Capital Lease Obligation was kr325.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	170.1	/	-53.1
	=	3.20

Karnell Group AB's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Karnell Group AB's Interest Expense was kr-10.7 Mil. Its Operating Income was kr16.9 Mil. And its Long-Term Debt & Capital Lease Obligation was kr385.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	16.9	/	-10.7
	=	1.58

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

Karnell Group AB (OSTO:KARNEL B) 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 .

Karnell Group AB Interest Coverage Related Terms

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

Karnell Group AB (OSTO:KARNEL B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Karnell Group AB (OSTO:KARNEL B) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Riddargatan 13D, Stockholm, SWE, 114 51

Website

https://www.karnell.se

Karnell Group AB is a company that is an active owner of industrial technology companies. The Company's business concept is to use a systematic and proactive acquisition strategy to identify and invest in industrial technology companies where Karnell believes there is development potential and thus an opportunity for value creation with Karnell as a long-term owner. It consists of twelve directly owned group companies, with subsidiaries, divided into two business areas that includes Product companies and Niched manufacturers. The business area Product companies consists of companies that wholly or predominantly base their business on proprietary products, which may include various rights such as trademarks, patents, etc.

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