Meriaura Group (OSTO:MERIS) Interest Coverage : 1.36 (As of Dec. 2023)

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What is Meriaura Group 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. Meriaura Group's Operating Income for the six months ended in Dec. 2023 was kr12.4 Mil. Meriaura Group's Interest Expense for the six months ended in Dec. 2023 was kr-9.1 Mil. Meriaura Group's interest coverage for the quarter that ended in Dec. 2023 was 1.36. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Meriaura Group Plcs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

OSTO:MERIS' s Interest Coverage Range Over the Past 10 Years
Min: 0.75 Med: 0.75 Max: 0.75
Current: 0.75

OSTO:MERIS's Interest Coverage is ranked worse than
95.89% of 633 companies
in the Semiconductors industry
Industry Median: 19.32 vs OSTO:MERIS: 0.75

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

Meriaura Group Interest Coverage Historical Data

The historical data trend for Meriaura Group'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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Meriaura Group Interest Coverage Chart

Meriaura Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.75

Meriaura Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	-	-	-	1.36

Competitive Comparison of Meriaura Group's Interest Coverage

For the Solar subindustry, Meriaura Group'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.

Meriaura Group's Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Meriaura Group's Interest Coverage distribution charts can be found below:

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

Meriaura Group 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.

Meriaura Group'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, Meriaura Group's Interest Expense was kr-15.5 Mil. Its Operating Income was kr11.7 Mil. And its Long-Term Debt & Capital Lease Obligation was kr137.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	11.667	/	-15.459
	=	0.75

Meriaura Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Meriaura Group's Interest Expense was kr-9.1 Mil. Its Operating Income was kr12.4 Mil. And its Long-Term Debt & Capital Lease Obligation was kr137.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	12.394	/	-9.083
	=	1.36

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

Meriaura Group (OSTO:MERIS) 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 .

Meriaura Group Interest Coverage Related Terms

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

Meriaura Group (OSTO:MERIS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Meriaura Group Plc (OSTO:MERIS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MERIH:Finland 5J4:Germany

Address

Insinoorinkatu 7, Mikkeli, FIN, FI-50150

Website

https://www.meriauraenergy.com

Meriaura Group Plc is a Finland-based company engaged in two businesses Renewable Energy and Marine Logistics. The renewable energy business area designs and delivers clean energy production systems as comprehensive deliveries. Its systems are built around large-scale solar heating systems implemented using high-performance solar thermal collectors manufactured by the company. The marine logistics business consists of the business operations of Meriaura Oy and VG-EcoFuel Oy. Meriaura is a provider of transport for bulk cargo and demanding project deliveries in Northern Europe. The company generates the majority of its revenue from the renewable energy segment.

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