Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Interest Coverage

: 4.49 (As of Sep. 2023)

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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. Companhia Deneamento Basico Do Estado Deo Paulo's Operating Income for the three months ended in Sep. 2023 was $345 Mil. Companhia Deneamento Basico Do Estado Deo Paulo's Interest Expense for the three months ended in Sep. 2023 was $-77 Mil. Companhia Deneamento Basico Do Estado Deo Paulo's interest coverage for the quarter that ended in Sep. 2023 was 4.49. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Companhia Deneamento Basico Do Estado Deo Paulo's Interest Coverage or its related term are showing as below:

SBS' s Interest Coverage Range Over the Past 10 Years
Min: 3.6 Med: 6.11 Max: 10.26
Current: 3.6

SBS's Interest Coverage is ranked worse than
50.91% of 440 companies
in the Utilities - Regulated industry
Industry Median: 3.69 vs SBS: 3.60

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

Companhia Deneamento Basico Do Estado Deo Paulo Interest Coverage Historical Data

The historical data trend for Companhia Deneamento Basico Do Estado Deo Paulo'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 10.26 [6] => 8.66 [7] => 5.96 [8] => 5.55 [9] => 3.79 )

Companhia Deneamento Basico Do Estado Deo Paulo Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

10.26

8.66

5.96

5.55

3.79

Companhia Deneamento Basico Do Estado Deo Paulo Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage																5.22	2.61	4.08	3.30	4.49

Competitive Comparison

For the Utilities - Regulated Water subindustry, Companhia Deneamento Basico Do Estado Deo Paulo'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.

Companhia Deneamento Basico Do Estado Deo Paulo Interest Coverage Distribution

For the Utilities - Regulated industry and Utilities sector, Companhia Deneamento Basico Do Estado Deo Paulo's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Companhia Deneamento Basico Do Estado Deo Paulo's Interest Coverage falls into.

Companhia Deneamento Basico Do Estado Deo Paulo 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.

Companhia Deneamento Basico Do Estado Deo Paulo's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Companhia Deneamento Basico Do Estado Deo Paulo's Interest Expense was $-232 Mil. Its Operating Income was $881 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,186 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	880.889	/	-232.2
	=	3.79

Companhia Deneamento Basico Do Estado Deo Paulo's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Companhia Deneamento Basico Do Estado Deo Paulo's Interest Expense was $-77 Mil. Its Operating Income was $345 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,311 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	344.612	/	-76.809
	=	4.49

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

Companhia Deneamento Basico Do Estado Deo Paulo (NYSE:SBS) 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 .

Companhia Deneamento Basico Do Estado Deo Paulo Interest Coverage Related Terms

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Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Companhia De Saneamento Basico Do Estado De Sao Paulo (NYSE:SBS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SAJA:Germany SBSP3:Brazil SBS:Argentina

Address

Rua Costa Carvalho, 300, Sao Paulo, SP, BRA, 05429-900

Website

https://www.sabesp.com.br

Companhia De Saneamento Basico Do Estado De Sao Paulo is Brazilian water and waste management company. SABESP is one of the largest waste management companies in the world, and the state of Sao Paulo is the company's majority stakeholder. The company generates revenue through exclusive long-term agreements with municipal governments. It is not uncommon for SABESP to serve the vast majority of the market. The company operates in a single segment, which is Sanitation services.