Universal Security Instruments (Universal Security Instruments) Interest Coverage : 3.17 (As of Dec. 2023)

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What is Universal Security Instruments Interest Coverage?

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. Universal Security Instruments's Operating Income for the three months ended in Dec. 2023 was $0.11 Mil. Universal Security Instruments's Interest Expense for the three months ended in Dec. 2023 was $-0.04 Mil. Universal Security Instruments's interest coverage for the quarter that ended in Dec. 2023 was 3.17. The higher the ratio, the stronger the company's financial strength is.

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

UUU' s Interest Coverage Range Over the Past 10 Years
Min: 0.39 Med: 1.01 Max: 4.09
Current: 3.26

UUU's Interest Coverage is ranked worse than
78.13% of 791 companies
in the Business Services industry
Industry Median: 13.4 vs UUU: 3.26

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

Universal Security Instruments Interest Coverage Historical Data

The historical data trend for Universal Security Instruments'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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Universal Security Instruments Interest Coverage Chart

Universal Security Instruments Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

0.39

1.54

0.47

4.09

Universal Security Instruments Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															5.43	9.08	4.40	-	3.17

Competitive Comparison of Universal Security Instruments's Interest Coverage

For the Security & Protection Services subindustry, Universal Security Instruments'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.

Universal Security Instruments's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Universal Security Instruments's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Universal Security Instruments's Interest Coverage falls into.

Universal Security Instruments 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.

Universal Security Instruments's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Universal Security Instruments's Interest Expense was $-0.24 Mil. Its Operating Income was $0.97 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.17 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	0.973	/	-0.238
	=	4.09

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

Here, for the three months ended in Dec. 2023, Universal Security Instruments's Interest Expense was $-0.04 Mil. Its Operating Income was $0.11 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.05 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	0.114	/	-0.036
	=	3.17

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

Universal Security Instruments (AMEX:UUU) 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 .

Universal Security Instruments Interest Coverage Related Terms

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

Universal Security Instruments (Universal Security Instruments) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Universal Security Instruments Inc (AMEX:UUU) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

11407 Cronhill Drive, Suite A, Owings Mills, MD, USA, 21117

Website

https://www.universalsecurity.com

Universal Security Instruments Inc is a U.S based manufacturer and distributor of safety and security devices in the Peoples Republic of China . The company markets a line of residential smoke and carbon monoxide alarms under the trade names UNIVERSAL and USI Electric. It also markets products to the electrical distribution trade such as electrical and lighting distributors as well as manufactured housing companies. Its product portfolio consists of smoke and fire alarms, carbon monoxide alarms, multi-gas alarms, universal smoke sensing technology, and plug-in alarms.

Executives

Bitnile Holdings, Inc.	10 percent owner	11411 SOUTHERN HIGHLANDS PARKWAY, SUITE 240, LAS VEGAS NV 89141
North Star Investment Management Corp.	other: SEE NOTE 2 BELOW	20 N. WACKER DRIVE, SUITE # 1416, CHICAGO IL 60606
North Star Micro Cap Fund	10 percent owner	80 ARKAY DRIVE, SUITE 110, HAUPPAUGE NY 11788
Ira Bormel	director	11407 CRONHILL DRIVE, SUITE A, OWINGS MILLS MD 21117
Harvey B Grossblatt	director, officer: President, CEO	7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117
Ronald A Seff	director	7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117
Howard B Silverman	director	7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117
Cary Luskin	director	7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117
Michael L Kovens	10 percent owner	6 REGENCY CT, BALTIMORE MD 21208
James Ballard Huff	officer: Chief Financial Officer	7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117
Ronald S Lazarus	10 percent owner	7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117
Stephen C Knepper	director, 10 percent owner, officer: Chairman, CEO	7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117