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Compass Diversified Holdings (Compass Diversified Holdings) Interest Coverage : 0.99 (As of Dec. 2023)


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What is Compass Diversified Holdings 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. Compass Diversified Holdings's Operating Income for the three months ended in Dec. 2023 was $24 Mil. Compass Diversified Holdings's Interest Expense for the three months ended in Dec. 2023 was $-25 Mil. Compass Diversified Holdings's interest coverage for the quarter that ended in Dec. 2023 was 0.99. The higher the ratio, the stronger the company's financial strength is.

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

CODI' s Interest Coverage Range Over the Past 10 Years
Min: 1.01   Med: 1.73   Max: 2.15
Current: 1.71


CODI's Interest Coverage is ranked worse than
78.12% of 393 companies
in the Conglomerates industry
Industry Median: 5.15 vs CODI: 1.71

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


Compass Diversified Holdings Interest Coverage Historical Data

The historical data trend for Compass Diversified Holdings'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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Compass Diversified Holdings Interest Coverage Chart

Compass Diversified Holdings 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 1.07 1.74 2.15 1.85 1.71

Compass Diversified Holdings 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 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 0.53 1.90 1.69 2.21 0.99

Competitive Comparison of Compass Diversified Holdings's Interest Coverage

For the Conglomerates subindustry, Compass Diversified Holdings'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.


Compass Diversified Holdings's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Compass Diversified Holdings's Interest Coverage falls into.



Compass Diversified Holdings 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.

Compass Diversified Holdings'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, Compass Diversified Holdings's Interest Expense was $-105 Mil. Its Operating Income was $179 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,662 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*179.469/-105.132
=1.71

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

Here, for the three months ended in Dec. 2023, Compass Diversified Holdings's Interest Expense was $-25 Mil. Its Operating Income was $24 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,662 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*24.494/-24.777
=0.99

* 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.


Compass Diversified Holdings  (NYSE:CODI) 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 .


Compass Diversified Holdings Interest Coverage Related Terms

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


Compass Diversified Holdings (Compass Diversified Holdings) Business Description

Traded in Other Exchanges
Address
301 Riverside Avenue, Second Floor, Westport, CT, USA, 06880
Compass Diversified Holdings is a diversified business conglomerate based in the United States having two groups: branded consumer business and niche industrial business. Branded consumer businesses are characterized as those businesses that capitalize on a valuable brand name in their respective market sector. It includes 5.11, Ergobaby, Liberty Safe, and Velocity Outdoor. Niche industrial businesses are characterized as those businesses that focus on manufacturing and selling particular products and industrial services within a specific market sector. It includes Advanced Circuits, Arnold, Foam Fabricators, and Sterno. The company has operations in the United States, Canada, Europe, Asia Pacific, and other International areas.
Executives
Ryan J Faulkingham other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880
Harold S Edwards other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880
Teri Shaffer other: See Remark (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
Nancy Mahon other: See Remark (a) C/O TPG PACE BENEFICIAL FINANCE CORP., 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Alexander S. Bhathal other: See Remark (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
James Bottiglieri other: See Remark (a) 2187 ATLANTIC ST, STAMFORD CT 06902
Larry L Enterline other: See Remark (a) 2709 WATER RIDGE PARKWAY, 2ND FLOOR, CHARLOTTE NC 28217
Gordon M Burns other: See Remark (a) AZTAR CORPORATION, 2390 E. CAMELBACK RD., SUITE 400, PHOENIX AZ 85016
Compass Group Investments, Ltd. 10 percent owner BELVEDERE BUILDING, 69 PITTS BAY ROAD, HAMILTON HM 08 D0 00000
Patrick A Maciariello other: See Remarks (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
Elias Sabo other: See Remarks (a) 2709 WATER RIDGE PARKWAY, 2ND FLOOR, CHARLOTTE NC 28217
Simon Heidi Locke other: See Remark (a) 26 KENSETT LANE, DARIEN CT 06820
Sarah Gaines Mccoy other: See Remark (a) 6300 MERRILL CREEK PARKWAY, SUITE B, EVERETT WA 98203-5862
C Sean Day other: See Remark (a)
D Eugene Ewing other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880