OVS SpA (MIL:OVS) Interest Coverage : 2.10 (As of Jul. 2023)

View and export this data going back to 2015. Start your Free Trial

What is OVS SpA 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. OVS SpA's Operating Income for the six months ended in Jul. 2023 was €57 Mil. OVS SpA's Interest Expense for the six months ended in Jul. 2023 was €-27 Mil. OVS SpA's interest coverage for the quarter that ended in Jul. 2023 was 2.10. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. OVS SpA interest coverage is 1.9, which is low.

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

MIL:OVS' s Interest Coverage Range Over the Past 10 Years
Min: 1.05 Med: 1.63 Max: 8.99
Current: 1.9

MIL:OVS's Interest Coverage is ranked worse than
74.69% of 715 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.17 vs MIL:OVS: 1.90

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

OVS SpA Interest Coverage Historical Data

The historical data trend for OVS SpA'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.

OVS SpA Interest Coverage Chart

OVS SpA Annual Data

Trend

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Interest Coverage

Get a 7-Day Free Trial

1.56

1.05

1.77

1.63

OVS SpA Semi-Annual Data
	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23
Interest Coverage	Get a 7-Day Free Trial															1.65	1.90	1.56	1.69	2.10

Competitive Comparison of OVS SpA's Interest Coverage

For the Apparel Manufacturing subindustry, OVS SpA'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.

OVS SpA's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, OVS SpA's Interest Coverage distribution charts can be found below:

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

OVS SpA 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.

OVS SpA's Interest Coverage for the fiscal year that ended in Jan. 2023 is calculated as

Here, for the fiscal year that ended in Jan. 2023, OVS SpA's Interest Expense was €-49 Mil. Its Operating Income was €79 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,127 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2023 )	/	Interest Expense (A: Jan. 2023 )
	=	-1	*	79.141	/	-48.681
	=	1.63

OVS SpA's Interest Coverage for the quarter that ended in Jul. 2023 is calculated as

Here, for the six months ended in Jul. 2023, OVS SpA's Interest Expense was €-27 Mil. Its Operating Income was €57 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,079 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jul. 2023 )	/	Interest Expense (Q: Jul. 2023 )
	=	-1	*	57.223	/	-27.244
	=	2.10

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

OVS SpA (MIL:OVS) 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 .

OVS SpA Interest Coverage Related Terms

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

OVS SpA (MIL:OVS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » OVS SpA (MIL:OVS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

OVSm:UK 0R5R:UK 0OV1:Germany

Address

Via Terraglio 17, Venice - Mestre, ITA, 30174

Website

http://www.ovscorporate.it

OVS SpA is an Italian fashion retailer. The company develops and markets menswear, womenswear and children's wear. Its operating segment includes OVS, UPIM and Sempione Fashion. OVS segment offers stylish and high-quality clothing at competitive prices focusing on the latest trends and fashion. Its UPIM segment offers women's, men's and children's clothing products, homeware and fragrance, The company generates maximum revenue from the OVS segment. Geographically, it has a presence in Italy, Bangladesh, China, Hong Kong, India, Pakistan, Turkey, Spain, Croatia, and Serbia.