Parmalat SpA (Parmalat SpA) Interest Coverage : 4.68 (As of Jun. 2018)

Parmalat SpA Interest Coverage Chart

Parmalat SpA Annual Data
	Trend	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17
Interest Coverage		Get a 7-Day Free Trial					33.59	29.33	16.87	10.70	11.50

Parmalat SpA Semi-Annual Data
	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18
Interest Coverage	Get a 7-Day Free Trial															11.12	10.36	8.09	15.18	4.68

Competitive Comparison of Parmalat SpA's Interest Coverage

For the Packaged Foods subindustry, Parmalat SpA'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.

Parmalat SpA's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Parmalat SpA's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Parmalat SpA's Interest Coverage falls into.

Parmalat SpA 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Parmalat SpA's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Parmalat SpA's Interest Expense was $-25 Mil. Its Operating Income was $291 Mil. And its Long-Term Debt & Capital Lease Obligation was $265 Mil.

Parmalat SpA's Interest Coverage for the quarter that ended in Jun. 2018 is calculated as

Here, for the six months ended in Jun. 2018, Parmalat SpA's Interest Expense was $-10 Mil. Its Operating Income was $48 Mil. And its Long-Term Debt & Capital Lease Obligation was $178 Mil.

* 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.

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

Parmalat SpA  (GREY:PMLAY) 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 .

Parmalat SpA Interest Coverage Related Terms

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Parmalat SpA (Parmalat SpA) Business Description