CAR (Avis Budget Group) Interest Coverage : 0 (At Loss) (As of Dec. 2024)

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What is Avis Budget Group 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. Avis Budget Group's Operating Income for the three months ended in Dec. 2024 was $-243 Mil. Avis Budget Group's Interest Expense for the three months ended in Dec. 2024 was $-92 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Avis Budget Group Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

CAR' s Interest Coverage Range Over the Past 10 Years
Min: 0.75 Med: 3.19 Max: 15.62
Current: 0.75

CAR's Interest Coverage is ranked worse than
95% of 800 companies
in the Business Services industry
Industry Median: 13.19 vs CAR: 0.75

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

Avis Budget Group Interest Coverage Historical Data

The historical data trend for Avis Budget Group'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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Avis Budget Group Interest Coverage Chart

Avis Budget Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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9.78

15.62

7.55

0.75

Avis Budget Group Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Interest Coverage	Get a 7-Day Free Trial															3.29	-	1.51	4.56	-

Competitive Comparison of Avis Budget Group's Interest Coverage

For the Rental & Leasing Services subindustry, Avis Budget Group'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.

Avis Budget Group's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Avis Budget Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Avis Budget Group's Interest Coverage falls into.

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Avis Budget Group 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.

Avis Budget Group'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, Avis Budget Group's Interest Expense was $-358 Mil. Its Operating Income was $269 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,393 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	269	/	-358
	=	0.75

Avis Budget Group's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Avis Budget Group's Interest Expense was $-92 Mil. Its Operating Income was $-243 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,393 Mil.

Avis Budget Group did not have earnings to cover the interest expense.

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

Avis Budget Group (NAS:CAR) 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 .

Avis Budget Group Interest Coverage Related Terms

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

Avis Budget Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Avis Budget Group Inc (NAS:CAR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CAR:Mexico 0HK4:UK CUCA:Germany CUCA:Germany CAR:Argentina

Address

379 Interpace Parkway, Parsippany, NJ, USA, 07054

Website

https://www.avisbudgetgroup.com

Avis Budget Group Inc is a provider of automotive vehicle rental and car-sharing services. Its brands include Avis, Budget, and Zipcar. Avis is targeted to serve the premium commercial and leisure segments of the travel industry, while Budget is focused on value-conscious customers. The company operates its own network of rental locations and licenses its brands to franchisees. Zipcar is a car-sharing service that allows members to use the company-owned Zipcar fleet at an hourly rate. The company's largest region by revenue is the Americas.

Executives

Lynn Krominga	director	6 SYLVAN WAY, PARSIPPANY NJ 07054
Joseph A. Ferraro	officer: President, Americas	6 SYLVAN WAY, PARSIPPANY NJ 07054
Izilda P Martins	officer: Sr VP and Acting CAO	6 SYLVAN WAY, PARSIPPANY NJ 07054
Patrick K Rankin	officer: President, International	6 SYLVAN WAY, PARSIPPANY NJ 07054
Edward P Linnen	officer: SVP, Chief HR Officer	6 SYLVAN WAY, PARSIPPANY NJ 07054
Bernardo Hees	director	C/O BUNGE LIMITED, 1391 TIMBERLAKE MANOR PARKWAY, CHESTERFIELD MO 63017
Karthik R. Sarma	director, 10 percent owner	ONE BRYANT PARK, 39TH FLOOR, NEW YORK NY 10036
Jean M Sera	officer: SVP, GC & Corp. Sec.	AVIS BUDGET GROUP, 6 SYLVAN WAY, PARSIPPANY NJ 07054
Glenn Lurie	director	C/O SYNCHRONOSS TECHNOLOGIES, INC., 200 CROSSING BLVD., BRIDGEWATER NJ 08807
Ravi Simhambhatla	officer: EVP, CDIO - see remarks	6 SYLVAN WAY, AVIS BUDGET GROUP, INC., PARSIPPANY NJ 07054
Anu Hariharan	director	2550 SAND HILL ROAD, SUITE 150, MENLO PARK CA 94025
Cathleen Degenova	officer: Chief Accounting Officer	6 SYLVAN WAY, PARSIPPANY NJ 07054
Veresh Sita	officer: EVP, CDIO (1)	6 SYLVAN WAY, AVIS BUDGET GROUP, INC., PARSIPPANY NJ 07054
Brian J Choi	director	C/O SRS INVESTMENT MANAGEMENT, LLC, ONE BRYANT PARK, 39TH FLOOR, NEW YORK NY 10036
Srs Investment Management, Llc	10 percent owner	1 BRYANT PARK, 39TH FLOOR, NEW YORK NY 10036