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Lokaty Budowlane (WAR:LBD) Interest Coverage : 2.06 (As of Sep. 2023)


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What is Lokaty Budowlane 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. Lokaty Budowlane's Operating Income for the three months ended in Sep. 2023 was zł0.31 Mil. Lokaty Budowlane's Interest Expense for the three months ended in Sep. 2023 was zł-0.15 Mil. Lokaty Budowlane's interest coverage for the quarter that ended in Sep. 2023 was 2.06. 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. Lokaty Budowlane SAs 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 Lokaty Budowlane's Interest Coverage or its related term are showing as below:

WAR:LBD' s Interest Coverage Range Over the Past 10 Years
Min: 0.1   Med: 1   Max: 12.94
Current: 0.74


WAR:LBD's Interest Coverage is ranked worse than
90.43% of 1337 companies
in the Real Estate industry
Industry Median: 4.05 vs WAR:LBD: 0.74

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


Lokaty Budowlane Interest Coverage Historical Data

The historical data trend for Lokaty Budowlane'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.

* Premium members only.

Lokaty Budowlane Interest Coverage Chart

Lokaty Budowlane Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 12.94 0.10

Lokaty Budowlane Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.48 - 0.32 0.63 2.06

Competitive Comparison of Lokaty Budowlane's Interest Coverage

For the Real Estate Services subindustry, Lokaty Budowlane'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.


Lokaty Budowlane's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Lokaty Budowlane's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Lokaty Budowlane's Interest Coverage falls into.



Lokaty Budowlane 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.

Lokaty Budowlane's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Lokaty Budowlane's Interest Expense was zł-0.44 Mil. Its Operating Income was zł0.04 Mil. And its Long-Term Debt & Capital Lease Obligation was zł0.83 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2022 )/Interest Expense (A: Dec. 2022 )
=-1*0.044/-0.435
=0.10

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

Here, for the three months ended in Sep. 2023, Lokaty Budowlane's Interest Expense was zł-0.15 Mil. Its Operating Income was zł0.31 Mil. And its Long-Term Debt & Capital Lease Obligation was zł0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*0.307/-0.149
=2.06

* 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.


Lokaty Budowlane  (WAR:LBD) 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 .


Lokaty Budowlane Interest Coverage Related Terms

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


Lokaty Budowlane (WAR:LBD) Business Description

Traded in Other Exchanges
N/A
Address
Popularna 19/2, Warsaw, POL, 02-473
Lokaty Budowlane SA is a development and construction company. The company is engaged in owning, operating and maintaining commercial buildings.

Lokaty Budowlane (WAR:LBD) Headlines

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