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Sesa SpA (CHIX:SESM) Interest Coverage : 1.10 (As of Jan. 2025)


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What is Sesa SpA 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. Sesa SpA's Operating Income for the three months ended in Jan. 2025 was €31 Mil. Sesa SpA's Interest Expense for the three months ended in Jan. 2025 was €-28 Mil. Sesa SpA's interest coverage for the quarter that ended in Jan. 2025 was 1.10. The higher the ratio, the stronger the company's financial strength is.

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

CHIX:SESm' s Interest Coverage Range Over the Past 10 Years
Min: 1.55   Med: 12.53   Max: 19.57
Current: 1.55


CHIX:SESm's Interest Coverage is ranked worse than
92.47% of 1659 companies
in the Software industry
Industry Median: 28.03 vs CHIX:SESm: 1.55

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


Sesa SpA Interest Coverage Historical Data

The historical data trend for Sesa SpA'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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Sesa SpA Interest Coverage Chart

Sesa SpA Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.25 17.28 19.57 5.19 2.56

Sesa SpA Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.57 5.38 1.86 1.12 1.10

Competitive Comparison of Sesa SpA's Interest Coverage

For the Information Technology Services subindustry, Sesa SpA'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.


Sesa SpA's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Sesa SpA's Interest Coverage distribution charts can be found below:

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


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Sesa SpA 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.

Sesa SpA's Interest Coverage for the fiscal year that ended in Apr. 2024 is calculated as

Here, for the fiscal year that ended in Apr. 2024, Sesa SpA's Interest Expense was €-43 Mil. Its Operating Income was €111 Mil. And its Long-Term Debt & Capital Lease Obligation was €250 Mil.

Interest Coverage=-1* Operating Income (A: Apr. 2024 )/Interest Expense (A: Apr. 2024 )
=-1*111.151/-43.345
=2.56

Sesa SpA's Interest Coverage for the quarter that ended in Jan. 2025 is calculated as

Here, for the three months ended in Jan. 2025, Sesa SpA's Interest Expense was €-28 Mil. Its Operating Income was €31 Mil. And its Long-Term Debt & Capital Lease Obligation was €196 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2025 )/Interest Expense (Q: Jan. 2025 )
=-1*30.872/-28.059
=1.10

* 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.

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


Sesa SpA  (CHIX:SESm) 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 .


Sesa SpA Interest Coverage Related Terms

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


Sesa SpA Business Description

Traded in Other Exchanges
Address
Via Piovola No. 138, Empoli, ITA, 50053
Sesa SpA and its subsidiaries are in the business of distribution of value-added IT solutions and products. The firm functions through the Business Services Sector, Value Added Distribution, Corporate Sector, and the Software and System Integration segment. The activities of these segments include the distribution of software and hardware technologies, the supply of IT services and solutions, administrative and financial services, organization, planning, and control, management of information technologies, human resources, general, corporate, and legal affairs, activities related to logistics services and cloud computing.

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