Husqvarna AB (Husqvarna AB) Interest Coverage

: 0 (At Loss) (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. Husqvarna AB's Operating Income for the three months ended in Dec. 2023 was $-96 Mil. Husqvarna AB's Interest Expense for the three months ended in Dec. 2023 was $-29 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

HSQVY' s Interest Coverage Range Over the Past 10 Years
Min: 3.73 Med: 7.49 Max: 23.62
Current: 3.83

HSQVY's Interest Coverage is ranked worse than
78.05% of 2301 companies
in the Industrial Products industry
Industry Median: 13.49 vs HSQVY: 3.83

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

Husqvarna AB Interest Coverage Historical Data

The historical data trend for Husqvarna AB'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] => 7.00 [6] => 11.72 [7] => 23.62 [8] => 6.43 [9] => 3.73 )

Husqvarna AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

7.00

11.72

23.62

6.43

3.73

Husqvarna AB Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																-	9.65	8.51	1.80	-

Competitive Comparison

For the Tools & Accessories subindustry, Husqvarna AB'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.

Husqvarna AB Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, Husqvarna AB's Interest Coverage distribution charts can be found below:

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

Husqvarna AB 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.

Husqvarna AB'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, Husqvarna AB's Interest Expense was $-101 Mil. Its Operating Income was $378 Mil. And its Long-Term Debt & Capital Lease Obligation was $974 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	378.256	/	-101.388
	=	3.73

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

Here, for the three months ended in Dec. 2023, Husqvarna AB's Interest Expense was $-29 Mil. Its Operating Income was $-96 Mil. And its Long-Term Debt & Capital Lease Obligation was $974 Mil.

Husqvarna AB did not have earnings to cover the interest expense.

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

Husqvarna AB (OTCPK:HSQVY) 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 .

Husqvarna AB Interest Coverage Related Terms

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

Husqvarna AB (Husqvarna AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Husqvarna AB (OTCPK:HSQVY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HUSQF:USA HUSQ B:Sweden HUSQ A:Sweden HUSQBs:UK 0GTR:UK HRZA:Germany

Address

Regeringsgatan 28, Box 7454, Stockholm, SWE, SE-111 53

Website

https://www.husqvarnagroup.com

Husqvarna AB makes outdoor power products for forest, park, and garden care. The company operates three business segments: Husqvarna, Gardena, and Construction. The Husqvarna segment generates most of the group's revenue. It manufactures and sells outdoor products such as chainsaws, trimmers, mowers, and park and garden care. The other segments offer garden watering and hand tools, as well as professional equipment and diamond tools for cutting and drilling in concrete, stone, and asphalt. Products are sold under the Husqvarna, Gardena, McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah, and Diamant Boart brands. The company's largest end markets are North America and Europe.