AOCIF (AutoCanada) Interest Coverage : 1.51 (As of Mar. 2025)

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What is AutoCanada 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. AutoCanada's Operating Income for the three months ended in Mar. 2025 was $16 Mil. AutoCanada's Interest Expense for the three months ended in Mar. 2025 was $-11 Mil. AutoCanada's interest coverage for the quarter that ended in Mar. 2025 was 1.51. The higher the ratio, the stronger the company's financial strength is.

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

AOCIF' s Interest Coverage Range Over the Past 10 Years
Min: 1.62 Med: 3.66 Max: 5.15
Current: 2.77

AOCIF's Interest Coverage is ranked worse than
72.74% of 1042 companies
in the Vehicles & Parts industry
Industry Median: 8.055 vs AOCIF: 2.77

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

AutoCanada Interest Coverage Historical Data

The historical data trend for AutoCanada'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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AutoCanada Interest Coverage Chart

AutoCanada Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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2.23

4.93

3.92

3.39

2.56

AutoCanada Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial															1.62	1.64	2.59	13.75	1.51

Competitive Comparison of AutoCanada's Interest Coverage

For the Auto & Truck Dealerships subindustry, AutoCanada'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.

AutoCanada's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, AutoCanada's Interest Coverage distribution charts can be found below:

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

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AutoCanada 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.

AutoCanada's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, AutoCanada's Interest Expense was $-40 Mil. Its Operating Income was $103 Mil. And its Long-Term Debt & Capital Lease Obligation was $659 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	103.155	/	-40.287
	=	2.56

AutoCanada's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, AutoCanada's Interest Expense was $-11 Mil. Its Operating Income was $16 Mil. And its Long-Term Debt & Capital Lease Obligation was $640 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	16.133	/	-10.66
	=	1.51

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

AutoCanada (OTCPK:AOCIF) 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 .

AutoCanada Interest Coverage Related Terms

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

AutoCanada Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » AutoCanada Inc (OTCPK:AOCIF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

31K:Germany ACQ:Canada

Address

15511 123 Avenue NW, No. 200, Edmonton, AB, CAN, T5V 0C3

Website

https://www.autocan.ca

AutoCanada Inc operates car dealerships in Canada. The company offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, extended service contracts, vehicle protection products, after-market products, and auction services. In addition, it also arranges financing and insurance for vehicle purchases by its customers through third-party finance and insurance sources. Maximum revenue for the company is generated through the sale of used cars. The company's reportable segments are Canadian Operations and U.S. Operations. A majority of its revenue is generated from its Canadian operations segment.