Smiths News (Smiths News) Interest Coverage

: 8.81 (As of Aug. 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. Smiths News's Operating Income for the six months ended in Aug. 2023 was $24 Mil. Smiths News's Interest Expense for the six months ended in Aug. 2023 was $-3 Mil. Smiths News's interest coverage for the quarter that ended in Aug. 2023 was 8.81. The higher the ratio, the stronger the company's financial strength is.

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

SMWPY' s Interest Coverage Range Over the Past 10 Years
Min: 4.54 Med: 7.16 Max: 8.85
Current: 7.19

SMWPY's Interest Coverage is ranked worse than
58.36% of 610 companies
in the Media - Diversified industry
Industry Median: 12 vs SMWPY: 7.19

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

Smiths News Interest Coverage Historical Data

The historical data trend for Smiths News'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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Smiths News Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Interest Coverage

7.82

5.04

5.81

7.13

7.19

Smiths News Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Interest Coverage																9.00	4.97	12.60	6.15	8.81

Competitive Comparison

For the Publishing subindustry, Smiths News'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.

Smiths News Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, Smiths News's Interest Coverage distribution charts can be found below:

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

Smiths News 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.

Smiths News's Interest Coverage for the fiscal year that ended in Aug. 2023 is calculated as

Here, for the fiscal year that ended in Aug. 2023, Smiths News's Interest Expense was $-7 Mil. Its Operating Income was $49 Mil. And its Long-Term Debt & Capital Lease Obligation was $62 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Aug. 2023 )	/	Interest Expense (A: Aug. 2023 )
	=	-1	*	49.301	/	-6.861
	=	7.19

Smiths News's Interest Coverage for the quarter that ended in Aug. 2023 is calculated as

Here, for the six months ended in Aug. 2023, Smiths News's Interest Expense was $-3 Mil. Its Operating Income was $24 Mil. And its Long-Term Debt & Capital Lease Obligation was $62 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Aug. 2023 )	/	Interest Expense (Q: Aug. 2023 )
	=	-1	*	23.507	/	-2.668
	=	8.81

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

Smiths News (OTCPK:SMWPY) 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 .

Smiths News Interest Coverage Related Terms

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Smiths News (Smiths News) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Smiths News PLC (OTCPK:SMWPY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

Rowan House, Cherry Orchard North, Kembrey Park, Swindon, Wiltshire, GBR, SN2 8UH

Website

https://www.smithsnews.co.uk

Smiths News PLC is a UK-based wholesale distributor of published content. The group is one of the UK's foremost publishers of newspapers and magazines, and it also operates as a book distributor through bookstores and an online platform serving the needs of academics and public libraries. Geographically, it derives a majority of revenue from the United Kingdom. Its segments include Smiths News Core; Dawson Media Direct (DMD); Instore and others.