Hermes International (Hermes International) Interest Coverage

: 89.84 (As of Dec. 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. Hermes International's Operating Income for the six months ended in Dec. 2023 was $3,037 Mil. Hermes International's Interest Expense for the six months ended in Dec. 2023 was $-34 Mil. Hermes International's interest coverage for the quarter that ended in Dec. 2023 was 89.84. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Hermes International SA has enough cash to cover all of its debt. Its financial situation is stable.

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

HESAY' s Interest Coverage Range Over the Past 10 Years
Min: 48.13 Med: 104.94 Max: 3271.75
Current: 102.77

HESAY's Interest Coverage is ranked better than
85.92% of 753 companies
in the Retail - Cyclical industry
Industry Median: 7.85 vs HESAY: 102.77

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

Hermes International Interest Coverage Historical Data

The historical data trend for Hermes 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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Hermes International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

97.02

61.61

112.38

107.11

102.77

Hermes International 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																122.20	124.94	94.08	118.80	89.84

Competitive Comparison

For the Luxury Goods subindustry, Hermes 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.

Hermes International Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Hermes International's Interest Coverage distribution charts can be found below:

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

Hermes 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.

Hermes International'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, Hermes International's Interest Expense was $-61 Mil. Its Operating Income was $6,276 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,930 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	6275.9	/	-61.069
	=	102.77

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

Here, for the six months ended in Dec. 2023, Hermes International's Interest Expense was $-34 Mil. Its Operating Income was $3,037 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,930 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3037.077	/	-33.806
	=	89.84

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

Hermes International (OTCPK:HESAY) 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 .

Hermes International Interest Coverage Related Terms

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

Hermes International (Hermes International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Hermes International SA (OTCPK:HESAY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HESAF:USA RMSp:UK 0HV2:UK RMS:France HMI:Germany

Address

24 rue du Faubourg Saint Honore, Paris, FRA, 75008

Website

https://www.hermes.com

Hermes is a 180-year-old family controlled luxury goods company best known for its Birkin and Kelly bags. Its biggest segments are leather goods and saddlery, accounting for around half of revenue; clothes and accessories (25% of sales); silk and textiles (7%); and other products such as perfumes, watches, jewellery, and home furnishings. Hermes has around 300 stores globally, of which it owns and operates 221.