Amcon Distributing Co (Amcon Distributing Co) Interest Coverage

: 1.49 (As of Mar. 2024)

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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. Amcon Distributing Co's Operating Income for the three months ended in Mar. 2024 was $3 Mil. Amcon Distributing Co's Interest Expense for the three months ended in Mar. 2024 was $-2 Mil. Amcon Distributing Co's interest coverage for the quarter that ended in Mar. 2024 was 1.49. The higher the ratio, the stronger the company's financial strength is.

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

DIT' s Interest Coverage Range Over the Past 10 Years
Min: 2.41 Med: 8.79 Max: 15.04
Current: 2.41

DIT's Interest Coverage is ranked worse than
81.89% of 254 companies
in the Retail - Defensive industry
Industry Median: 9.045 vs DIT: 2.41

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

Amcon Distributing Co Interest Coverage Historical Data

The historical data trend for Amcon Distributing Co'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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Amcon Distributing Co Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

5.77

5.65

13.30

10.04

3.04

Amcon Distributing Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage																2.46	3.32	3.13	1.65	1.49

Competitive Comparison

For the Food Distribution subindustry, Amcon Distributing Co'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.

Amcon Distributing Co Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Amcon Distributing Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Amcon Distributing Co's Interest Coverage falls into.

Amcon Distributing Co 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.

Amcon Distributing Co's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Amcon Distributing Co's Interest Expense was $-9 Mil. Its Operating Income was $26 Mil. And its Long-Term Debt & Capital Lease Obligation was $170 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	25.967	/	-8.55
	=	3.04

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

Here, for the three months ended in Mar. 2024, Amcon Distributing Co's Interest Expense was $-2 Mil. Its Operating Income was $3 Mil. And its Long-Term Debt & Capital Lease Obligation was $132 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	3.344	/	-2.248
	=	1.49

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

Amcon Distributing Co (AMEX:DIT) 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 .

Amcon Distributing Co Interest Coverage Related Terms

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Amcon Distributing Co (Amcon Distributing Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Amcon Distributing Co (AMEX:DIT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

7405 Irvington Road, Omaha, NE, USA, 68122

Website

https://www.amcon.com

Amcon Distributing Co is engaged in the wholesale and retail distribution of consumer products such as cigarettes, tobacco, confectionery, health food, and others. It operates in two segments: Wholesale distribution segment distributing consumer products to the retail outlets including convenience stores, grocery stores, liquor stores, drug stores, and tobacco shops in the Central, Rocky Mountain, and Southern regions of the United States; and the Retail health food segment is a specialty retailer of natural/organic groceries and dietary supplements throughout the Midwest and Florida. The company earns a majority of the revenue from the Wholesale distribution segment.

Executives

Kathleen M Evans	director, officer: President	15701 NORTH 47TH ST, OMAHA NE 68152
Charles J. Schmaderer	officer: VP,Controller,Secretary	7405 IRVINGTON ROAD, OMAHA NE 68122
Jeremy W Hobbs	director	444 NORTH MICHIGAN AVE, STE 2050, CHICAGO IL 60611
John R Loyack	director	ALVARADO SQUARE MS 2818, ALBUQUERQUE NM 87158
William F Wright	director, 10 percent owner, officer: Chairman	1431 STRATFORD CT, DEL MAR CA 92014
Timothy R Pestotnik	director	600 W BROADWAY, STE 2600, SAN DIEGO CA 92101
Stanley Mayer	director
Christopher H Atayan	director, officer: CEO and Vice Chairman	C/O SLUSSER ASSOCIATES, INC., 153 EAST 53RD STREET, NEW YORK NY 10022
Andrew Charles Plummer	officer: Chief Financial Officer	18325 JEFFERSON ST, OMAHA NE 68135
Eric J Hinkefent	officer: President of CNF and HFA	ROUTE 5, BOX 445, COWETA OK 74429
Raymond F Bentele	director	C/O MALLINCKRODT GROUP INC, 7733 FORSYTH BLVD, ST LOUIS MO 63105
Philip E Campbell	officer: SVP - Planning and Compliance	1302 ELMSHADE COVE, ROUND ROCK TX 78664
Draupnir Llc	10 percent owner	500 N DEARBORN, 2ND FL, CHICAGO IL 60610
Allen D Petersen	director, 10 percent owner	122 WEST COUNTY LINE ROAD, BARRINGTON HILLS IL 60010
Dawson Foundation Alexander	10 percent owner	4045 SOUTH SPENCER STREEET, SUITE 312, LAS VEGAS NV 89119