BAB (BABB) Interest Coverage : N/A (As of Feb. 2024)

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What is BAB 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. BAB's Operating Income for the three months ended in Feb. 2024 was $0.12 Mil. BAB's Interest Expense for the three months ended in Feb. 2024 was $0.00 Mil. GuruFocus does not calculate 's interest coverage with the available data. 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. BAB Inc has enough cash to cover all of its debt. Its financial situation is stable.

(1) 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.

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

BABB's Interest Coverage is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 8.4
* 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.

BAB Interest Coverage Historical Data

The historical data trend for BAB'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.

BAB Interest Coverage Chart

BAB Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Interest Coverage

Get a 7-Day Free Trial

N/A

No Debt

BAB Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Interest Coverage	Get a 7-Day Free Trial															N/A	No Debt	No Debt	No Debt	N/A

Competitive Comparison of BAB's Interest Coverage

For the Packaged Foods subindustry, BAB'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.

BAB's Interest Coverage Distribution in the Consumer Packaged Goods Industry

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

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

BAB 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.

BAB's Interest Coverage for the fiscal year that ended in Nov. 2023 is calculated as

Here, for the fiscal year that ended in Nov. 2023, BAB's Interest Expense was $0.00 Mil. Its Operating Income was $0.62 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

BAB had no debt ⁽¹⁾.

BAB's Interest Coverage for the quarter that ended in Feb. 2024 is calculated as

Here, for the three months ended in Feb. 2024, BAB's Interest Expense was $0.00 Mil. Its Operating Income was $0.12 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.36 Mil.

GuruFocus does not calculate BAB's interest coverage with the available data.

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

BAB (OTCPK:BABB) 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 .

BAB Interest Coverage Related Terms

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

BAB (BABB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » BAB Inc (OTCPK:BABB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

500 Lake Cook Road, Suite 475, Deerfield, IL, USA, 60015

Website

https://www.babcorp.com

BAB Inc franchises and licenses bagel and muffin retail units under the Big Apple Bagels, My Favorite Muffin, and SweetDuet trade names. The company also sell its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard and Green Beans Coffee. It has approximately 68 franchise units and 4 licensed units in operation in 20 states across the United States and one international location.

Executives

Geraldine Conn	officer: Chief Financial Officer	2418 ABBEY DRIVE, DARIEN IL 60561
Jcp Investment Management, Llc	10 percent owner	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partnership, Lp	10 percent owner	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partners, Lp	10 percent owner	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Holdings, Llc	10 percent owner	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
James C Pappas	10 percent owner	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Michael K Murtaugh	director, 10 percent owner, officer: Vice President General Counsel	500 LAKE COOK ROAD, SUITE 475, DEERFIELD IL 60015
Jeffrey M Gorden	officer: Chief Financial Officer	500 LAKE COOK ROAD, SUITE 475, DEERFIELD IL 60015
James Allen Lentz	director	1415 COLLEGE LANE SOUTH, WHEATON IL 60187
David L Epstein	director	PRECISION RESPONSE CORP, 1505 N W 167TH STREET, MIAMI FL 33169
John J Bracken	officer: Vice President Operations	8501 W HIGGINS RD, STE 320, CHICAGO IL 60631
Michael W Evans	director, 10 percent owner, officer: Chief Executive Officer	500 LAKE COOK ROAD, SUITE 475, DEERFIELD IL 60015
Steven G Feldman	director
Bab Inc	officer: Chief Financial Officer	500 LAKE COOK ROAD, SUITE 475, DEERFIELD IL 60015