Ferrari NV (CHIX:RACEM) Interest Coverage : 36.46 (As of Sep. 2024)

View and export this data going back to 2016. Start your Free Trial

What is Ferrari NV 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. Ferrari NV's Operating Income for the three months ended in Sep. 2024 was €464 Mil. Ferrari NV's Interest Expense for the three months ended in Sep. 2024 was €-13 Mil. Ferrari NV's interest coverage for the quarter that ended in Sep. 2024 was 36.46. The higher the ratio, the stronger the company's financial strength is.

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

CHIX:RACEm' s Interest Coverage Range Over the Past 10 Years
Min: 14.54 Med: 27.3 Max: 55.07
Current: 50.69

CHIX:RACEm's Interest Coverage is ranked better than
82.51% of 1029 companies
in the Vehicles & Parts industry
Industry Median: 7.94 vs CHIX:RACEm: 50.69

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

Ferrari NV Interest Coverage Historical Data

The historical data trend for Ferrari NV'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.

* Premium members only.

Ferrari NV Interest Coverage Chart

Ferrari NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

19.19

14.54

45.15

47.91

55.07

Ferrari NV Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															41.47	147.30	50.98	45.01	36.46

Competitive Comparison of Ferrari NV's Interest Coverage

For the Auto Manufacturers subindustry, Ferrari NV'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.

Ferrari NV's Interest Coverage Distribution in the Vehicles & Parts Industry

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

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

Ferrari NV 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.

Ferrari NV'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, Ferrari NV's Interest Expense was €-29 Mil. Its Operating Income was €1,611 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,477 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1611.232	/	-29.258
	=	55.07

Ferrari NV's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Ferrari NV's Interest Expense was €-13 Mil. Its Operating Income was €464 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,847 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	464.421	/	-12.738
	=	36.46

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

Ferrari NV (CHIX:RACEm) 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 .

Ferrari NV Interest Coverage Related Terms

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

Ferrari NV Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ferrari NV (CHIX:RACEm) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RACE:USA RACEN:Mexico RACE:Italy 0RDT:UK 2FE:Germany 2FE:Bulgaria RACE:Austria

Address

Via Abetone Inferiore n. 4, Maranello, ITA, I-41053

Website

https://www.ferrari.com

Ferrari designs, engineers, and manufactures some of the world's most expensive luxury cars. With supply carefully controlled to be below demand and a brand steeped in decades of motor racing history, a Ferrari is viewed as a status symbol. In 2023, the company sold 13,663 vehicles at an average price over EUR 400,000 with more than 70% of its vehicles being sold to existing Ferrari clients. Eighty-six percent of revenue is generated from the sale of cars and spare parts and 10% from sponsorship, commercial, and brand activities including racing and lifestyle activities. In 2023, the Europe, Middle East, and Africa region accounted for 48% of revenue, the Americas was 30%, mainland China, Hong Kong, and Taiwan was 10%, and the rest of Asia was 13%.

Ferrari NV Headlines

No Headlines