Reed's (Reed's) Interest Coverage : 0 (At Loss) (As of Dec. 2023)

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What is Reed's 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. Reed's's Operating Income for the three months ended in Dec. 2023 was $-4.95 Mil. Reed's's Interest Expense for the three months ended in Dec. 2023 was $-1.65 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

REED's Interest Coverage is not ranked ^*
in the Beverages - Non-Alcoholic industry.
Industry Median: 17.45
* 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.

Reed's Interest Coverage Historical Data

The historical data trend for Reed's'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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Reed's Interest Coverage Chart

Reed's Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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Reed's Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Reed's's Interest Coverage

For the Beverages - Non-Alcoholic subindustry, Reed's'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.

Reed's's Interest Coverage Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Reed's's Interest Coverage distribution charts can be found below:

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

Reed's 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.

Reed's'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, Reed's's Interest Expense was $-6.11 Mil. Its Operating Income was $-9.42 Mil. And its Long-Term Debt & Capital Lease Obligation was $10.87 Mil.

Reed's did not have earnings to cover the interest expense.

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

Here, for the three months ended in Dec. 2023, Reed's's Interest Expense was $-1.65 Mil. Its Operating Income was $-4.95 Mil. And its Long-Term Debt & Capital Lease Obligation was $10.87 Mil.

Reed's did not have earnings to cover the interest expense.

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

Reed's (OTCPK:REED) 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 .

Reed's Interest Coverage Related Terms

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Reed's (Reed's) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Reed's Inc (OTCPK:REED) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

201 Merritt 7, Norwalk, CT, USA, 06851

Website

https://www.drinkreeds.com

Reed's Inc sells Ginger Beer brand. The company's portfolio of handcrafted, all-natural beverages is sold in over 45,000 outlets nationwide including the natural and specialty food channel, grocery stores, mass merchants, drug stores, convenience stores, club stores, and on-premise locations including bars and restaurants. The company's two core brands are Reed's, which includes Reed's Craft Ginger Beer, Reed's Real Ginger Ale, Reed's Mules, and Reed's Hard Ginger Ale; and Virgil's Handcrafted sodas.

Executives

John Bello	director	201 MERRITT 7 CORPORATE PARK, NORWALK CT 06851
Shufen Deng	10 percent owner	ROOMS 3006-07, CHINA RESOURCES BUILDING, 26 HARBOUR ROAD, WANCHAI, HONG KONG K3 000000
D&d Source Of Life Holding Ltd.	10 percent owner	ROOMS 3006-07, CHINA RESOURCES BUILDING, 26 HARBOUR ROAD, WANCHAI, HONG KONG K3 000000
Union Square Park Capital Management, Llc	director, 10 percent owner, other: See Remarks	1120 AVENUE OF THE AMERICAS, SUITE 1512, NEW YORK NY 10036
Christopher Scott Burleson	officer: CCO	6527 LEDERER AVE, WEST HILLS CA 91307
Thomas Wayne Kosler	director	39919 N. 102ND ST, SCOTTSDALE AZ 85262
Leon Michael Zaltzman	director, 10 percent owner, other: See Remarks	1120 AVENUE OF THE AMERICAS, FLOOR 15, NEW YORK NY 10036
Union Square Park Gp, Llc	director, 10 percent owner, other: See Remarks	1120 AVENUE OF THE AMERICAS, 15TH FLOOR, NEW YORK NY 10036
Union Square Park Partners, Lp	director, 10 percent owner, other: See Remarks	1251 AVENUE OF THE AMERICAS, 34TH FLOOR, NEW YORK NY 10020
Rhonda Kallman	director	42 BROOK STREET, SCITUATE MA 02066
Thomas J. Spisak	officer: CFO	201 MERRITT 7, NORWALK CT 06851
Snyder Norman E. Jr.	officer: COO	88 GREY ROCKS ROAD, WILTON CT 06897
Richard H. Hubli	officer: COO	36 ROCKHOUSE ROAD, WILTON CT 06897
Joann Christine Tinnelly	officer: INTERIM CFO 11/22/19 -12/1/19	19 NORTON LANE, OLD GREENWICH CT 06870
Lewis Jaffe	director	201 MERRITT 7 CORPORATE PARK, NORWALK CT 06851