Carreras (XJAM:CAR) Interest Coverage : 253.22 (As of Mar. 2023)

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What is Carreras 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. Carreras's Operating Income for the six months ended in Mar. 2023 was JMD4,917 Mil. Carreras's Interest Expense for the six months ended in Mar. 2023 was JMD-19 Mil. Carreras's interest coverage for the quarter that ended in Mar. 2023 was 253.22. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Carreras Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

XJAM:CAR' s Interest Coverage Range Over the Past 10 Years
Min: 239.95 Med: 370.61 Max: No Debt
Current: 253.22

XJAM:CAR's Interest Coverage is ranked better than
74.19% of 31 companies
in the Tobacco Products industry
Industry Median: 11 vs XJAM:CAR: 253.22

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

Carreras Interest Coverage Historical Data

The historical data trend for Carreras'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.

Carreras Interest Coverage Chart

Carreras Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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413.32

277.12

239.95

295.84

253.22

Carreras Semi-Annual Data
	Mar10	Mar11	Mar12	Mar13	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23
Interest Coverage	Get a 7-Day Free Trial									413.32	277.12	239.95	295.84	253.22

Competitive Comparison of Carreras's Interest Coverage

For the Tobacco subindustry, Carreras'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.

Carreras's Interest Coverage Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Carreras's Interest Coverage distribution charts can be found below:

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

Carreras 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.

Carreras'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, Carreras's Interest Expense was JMD-19 Mil. Its Operating Income was JMD4,917 Mil. And its Long-Term Debt & Capital Lease Obligation was JMD234 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	4917.069	/	-19.418
	=	253.22

Carreras's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the six months ended in Mar. 2023, Carreras's Interest Expense was JMD-19 Mil. Its Operating Income was JMD4,917 Mil. And its Long-Term Debt & Capital Lease Obligation was JMD234 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	4917.069	/	-19.418
	=	253.22

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

Carreras (XJAM:CAR) 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 .

Carreras Interest Coverage Related Terms

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

Carreras (XJAM:CAR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Carreras Ltd (XJAM:CAR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

13A Ripon Road, Kingston, JAM, 5

Website

https://www.carrerasltd.com

Carreras Ltd is a marketer and distributor of cigarettes and tobacco-related products in Jamaica. The company markets and distributes various brands of cigarettes including Craven A and Matterhorn. The group's activities are limited to the distribution of cigarettes to Jamaican consumers, operating in a single segment.