Essentra (Essentra) Interest Coverage

: 12.06 (As of Dec. 2023)

View and export this data going back to 2005. Start your Free Trial

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. Essentra's Operating Income for the six months ended in Dec. 2023 was $25.9 Mil. Essentra's Interest Expense for the six months ended in Dec. 2023 was $-2.2 Mil. Essentra's interest coverage for the quarter that ended in Dec. 2023 was 12.06. The higher the ratio, the stronger the company's financial strength is.

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

FLRAF' s Interest Coverage Range Over the Past 10 Years
Min: 0.82 Med: 4.8 Max: 13.93
Current: 3.58

FLRAF's Interest Coverage is ranked worse than
75.42% of 1192 companies
in the Chemicals industry
Industry Median: 9.705 vs FLRAF: 3.58

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

Essentra Interest Coverage Historical Data

The historical data trend for Essentra'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.

Essentra Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.18

3.01

1.37

0.82

3.58

Essentra Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage																0.02	0.07	5.11	1.49	12.06

Competitive Comparison

For the Specialty Chemicals subindustry, Essentra'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.

Essentra Interest Coverage Distribution

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

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

Essentra 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.

Essentra'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, Essentra's Interest Expense was $-10.9 Mil. Its Operating Income was $39.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $151.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	38.987	/	-10.886
	=	3.58

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

Here, for the six months ended in Dec. 2023, Essentra's Interest Expense was $-2.2 Mil. Its Operating Income was $25.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $151.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	25.949	/	-2.152
	=	12.06

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

Essentra (OTCPK:FLRAF) 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 .

Essentra Interest Coverage Related Terms

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

Essentra (Essentra) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Essentra PLC (OTCPK:FLRAF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ESNTl:UK ESNT:UK HOF:Germany

Address

Langford Locks, Kidlington, Oxford, GBR, OX5 1HX

Website

https://www.essentraplc.com

Essentra PLC makes and sells components. The company organizes itself into three segments based on product type. The components segment includes small plastic and metal pieces for use in the industrial and consumer equipment sectors. The packaging segment provides product packaging to large- and mid-sized companies in the health and personal care sectors. The filters segment supplies tobacco filters, tobacco lab testing services, and tear tape for use in food and drink packaging. Essentra sells its products worldwide, and the majority of revenue comes from Europe and Africa.

Essentra (Essentra) Headlines

From GuruFocus

David Herro Comments on Essentra

By Sydnee Gatewood • 01-11-2022

Unraveling the Dividend Story of Essentra PLC (FLRAF)

By GuruFocus Research • 09-21-2023