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Paz (XSGO:PAZ) Interest Coverage : 1.99 (As of Mar. 2024)


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What is Paz 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. Paz's Operating Income for the three months ended in Mar. 2024 was CLP4,423 Mil. Paz's Interest Expense for the three months ended in Mar. 2024 was CLP-2,222 Mil. Paz's interest coverage for the quarter that ended in Mar. 2024 was 1.99. The higher the ratio, the stronger the company's financial strength is.

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


XSGO:PAZ's Interest Coverage is not ranked *
in the Real Estate industry.
Industry Median: 4.05
* Ranked among companies with meaningful Interest Coverage only.

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


Paz Interest Coverage Historical Data

The historical data trend for Paz'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.

Paz Interest Coverage Chart

Paz Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 97.10 - - - -

Paz Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 5.73 - 6.38 - 1.99

Competitive Comparison of Paz's Interest Coverage

For the Real Estate Services subindustry, Paz'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.


Paz's Interest Coverage Distribution in the Real Estate Industry

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

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



Paz 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.

Paz'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, Paz's Interest Expense was CLP25,260 Mil. Its Operating Income was CLP27,273 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP144,761 Mil.

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

Here, for the three months ended in Mar. 2024, Paz's Interest Expense was CLP-2,222 Mil. Its Operating Income was CLP4,423 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP133,464 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*4423.046/-2221.643
=1.99

* 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.


Paz  (XSGO:PAZ) 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 .


Paz Interest Coverage Related Terms

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


Paz (XSGO:PAZ) Business Description

Traded in Other Exchanges
N/A
Address
Avenue Apoquindo 4501, 20th floor, Las Condes, Santiago, CHL
Paz Corp SA develops real estate projects. It controls, supervises and executes the architecture, construction, marketing, commercialization, and customer financing of projects. The company offers lofts, apartments, and home studios, as well as real estate and financial advisory, and post-sale services. Some of its projects are Sun City, future & urban air. It has presence in Chile and Peru.

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