Purcari Wineries PCL (BSE:WINE) Interest Coverage : 7.99 (As of Mar. 2024)

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What is Purcari Wineries PCL 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. Purcari Wineries PCL's Operating Income for the three months ended in Mar. 2024 was lei16.3 Mil. Purcari Wineries PCL's Interest Expense for the three months ended in Mar. 2024 was lei-2.0 Mil. Purcari Wineries PCL's interest coverage for the quarter that ended in Mar. 2024 was 7.99. The higher the ratio, the stronger the company's financial strength is.

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

BSE:WINE' s Interest Coverage Range Over the Past 10 Years
Min: 9.36 Med: 12.01 Max: 16.26
Current: 9.36

BSE:WINE's Interest Coverage is ranked better than
51.87% of 160 companies
in the Beverages - Alcoholic industry
Industry Median: 8.43 vs BSE:WINE: 9.36

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

Purcari Wineries PCL Interest Coverage Historical Data

The historical data trend for Purcari Wineries PCL'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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Purcari Wineries PCL Interest Coverage Chart

Purcari Wineries PCL Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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9.61

9.37

16.26

13.93

10.11

Purcari Wineries PCL Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															11.39	8.92	10.32	10.00	7.99

Competitive Comparison of Purcari Wineries PCL's Interest Coverage

For the Beverages - Wineries & Distilleries subindustry, Purcari Wineries PCL'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.

Purcari Wineries PCL's Interest Coverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Purcari Wineries PCL's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Purcari Wineries PCL's Interest Coverage falls into.

Purcari Wineries PCL 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.

Purcari Wineries PCL'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, Purcari Wineries PCL's Interest Expense was lei-7.6 Mil. Its Operating Income was lei77.1 Mil. And its Long-Term Debt & Capital Lease Obligation was lei105.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	77.132	/	-7.633
	=	10.11

Purcari Wineries PCL's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Purcari Wineries PCL's Interest Expense was lei-2.0 Mil. Its Operating Income was lei16.3 Mil. And its Long-Term Debt & Capital Lease Obligation was lei104.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	16.294	/	-2.039
	=	7.99

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

Purcari Wineries PCL (BSE:WINE) 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 .

Purcari Wineries PCL Interest Coverage Related Terms

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

Purcari Wineries PCL (BSE:WINE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Purcari Wineries PCL (BSE:WINE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1, Lampousas Street, Nicosia, CYP, 1095

Website

https://www.purcari.wine

Purcari Wineries PCL is engaged in the business of production of wine and brandy products in Romania and Moldova. The company exports its products to various countries across Europe, Asia, and America. The Group has five core brands across wide range of price segments in the still and sparkling wine categories, as well as a brand in the popular premium brandy segment which are Purcari Wine, Crama Ceptura Wine, Domeniile Cuza, Bostavan Wine and Bardar Divin and Angel's Estate. The Group operates four production platforms in Romania and Moldova, three of which are dedicated to wine production and one dedicated to brandy production.

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