RPM International (RPM International) Interest Coverage : 3.50 (As of Feb. 2024)

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What is RPM International 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. RPM International's Operating Income for the three months ended in Feb. 2024 was $100 Mil. RPM International's Interest Expense for the three months ended in Feb. 2024 was $-29 Mil. RPM International's interest coverage for the quarter that ended in Feb. 2024 was 3.50. The higher the ratio, the stronger the company's financial strength is.

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

RPM' s Interest Coverage Range Over the Past 10 Years
Min: 4.81 Med: 5.96 Max: 8.68
Current: 7.03

RPM's Interest Coverage is ranked worse than
58.54% of 1194 companies
in the Chemicals industry
Industry Median: 9.8 vs RPM: 7.03

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

RPM International Interest Coverage Historical Data

The historical data trend for RPM International'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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RPM International Interest Coverage Chart

RPM International Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Interest Coverage

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4.81

5.39

8.68

7.33

6.65

RPM International 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															2.79	7.50	9.35	7.41	3.50

Competitive Comparison of RPM International's Interest Coverage

For the Specialty Chemicals subindustry, RPM International'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.

RPM International's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, RPM International's Interest Coverage distribution charts can be found below:

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

RPM International 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.

RPM International's Interest Coverage for the fiscal year that ended in May. 2023 is calculated as

Here, for the fiscal year that ended in May. 2023, RPM International's Interest Expense was $-119 Mil. Its Operating Income was $792 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,791 Mil.

Interest Coverage	=	-1	*	Operating Income (A: May. 2023 )	/	Interest Expense (A: May. 2023 )
	=	-1	*	792.004	/	-119.015
	=	6.65

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

Here, for the three months ended in Feb. 2024, RPM International's Interest Expense was $-29 Mil. Its Operating Income was $100 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,465 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Feb. 2024 )	/	Interest Expense (Q: Feb. 2024 )
	=	-1	*	99.802	/	-28.527
	=	3.50

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

RPM International (NYSE:RPM) 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 .

RPM International Interest Coverage Related Terms

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

RPM International (RPM International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » RPM International Inc (NYSE:RPM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RP8:Germany RP8:Germany

Address

2628 Pearl Road, P.O. Box 777, Medina, OH, USA, 44256

Website

https://www.rpminc.com

RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributers, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a variety of products ranging from niche applications of the other groups, to marine finishes, to edible food colorings. The majority of revenue comes from North America.

Executives

Timothy R. Kinser	officer: VP-Operations	2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Frederick R. Nance	director	2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Frank C Sullivan	director, officer: President and CEO
Michael J. Laroche	officer: VP, Controller & CAO	2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Edward W. Moore	officer: VP, Gen. Counsel & Secretary	2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Matthew T Ratajczak	officer: VP-Global Tax and Treasurer	2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Russell L Gordon	officer: VP and CFO	2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Ellen M Pawlikowski	director	870 WINTER STREET, WALTHAM MA 02451
Elizabeth F Whited	director	1400 DOUGLAS ST, OMAHA NE 68179
Thomas Gross	director	DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006
David A. Daberko	director	C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Michael Hobart Sullivan	officer: VP, Operations and CRO	2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
John M Ballbach	director
Kirkland B Andrews	director	C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105
Robert Livingston	director	C/O DOVER CORPORATION, 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515