America's Car-Mart (America's Car-Mart) Interest Coverage : 0.39 (As of Jan. 2024)

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What is America's Car-Mart 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. America's Car-Mart's Operating Income for the three months ended in Jan. 2024 was $7 Mil. America's Car-Mart's Interest Expense for the three months ended in Jan. 2024 was $-17 Mil. America's Car-Mart's interest coverage for the quarter that ended in Jan. 2024 was 0.39. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for America's Car-Mart's Interest Coverage or its related term are showing as below:

CRMT' s Interest Coverage Range Over the Past 10 Years
Min: 0.37 Med: 9.1 Max: 20.84
Current: 0.37

CRMT's Interest Coverage is ranked worse than
97.38% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.79 vs CRMT: 0.37

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

America's Car-Mart Interest Coverage Historical Data

The historical data trend for America's Car-Mart'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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America's Car-Mart Interest Coverage Chart

America's Car-Mart Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Interest Coverage

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8.58

8.98

20.84

12.24

1.68

America's Car-Mart Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage	Get a 7-Day Free Trial															1.19	1.18	1.38	-	0.39

Competitive Comparison of America's Car-Mart's Interest Coverage

For the Auto & Truck Dealerships subindustry, America's Car-Mart'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.

America's Car-Mart's Interest Coverage Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where America's Car-Mart's Interest Coverage falls into.

America's Car-Mart 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.

America's Car-Mart's Interest Coverage for the fiscal year that ended in Apr. 2023 is calculated as

Here, for the fiscal year that ended in Apr. 2023, America's Car-Mart's Interest Expense was $-38 Mil. Its Operating Income was $64 Mil. And its Long-Term Debt & Capital Lease Obligation was $701 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Apr. 2023 )	/	Interest Expense (A: Apr. 2023 )
	=	-1	*	64.467	/	-38.312
	=	1.68

America's Car-Mart's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, America's Car-Mart's Interest Expense was $-17 Mil. Its Operating Income was $7 Mil. And its Long-Term Debt & Capital Lease Obligation was $751 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	6.508	/	-16.731
	=	0.39

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

America's Car-Mart (NAS:CRMT) 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 .

America's Car-Mart Interest Coverage Related Terms

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

America's Car-Mart (America's Car-Mart) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » America's Car-Mart Inc (NAS:CRMT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1805 North 2nd Street, Suite 401, Rogers, AR, USA, 72756

Website

https://www.car-mart.com

America's Car-Mart Inc is an automotive retailer in us focused exclusively on the Integrated Auto Sales and Finance segment of the used car market. The Company's operations are principally conducted through its two operating subsidiaries, America's Car Mart Inc and Colonial Auto Finance. It primarily sells older model used vehicles and provides financing for substantially all of its customers. The Company earns revenue from the sale of used vehicles and in most cases a related service contract and an accident protection plan product, as well as interest income and late fees from the related financing.

Executives

Magnolia Capital Fund, Lp	10 percent owner	1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Campbell Douglas W. Jr.	officer: President	C/O AMERICA'S CAR-MART, INC., 1805 NORTH 2ND STREET, SUITE 401, ROGERS AR 72756
Joshua G Welch	director	C/O VICUNA ADVISORS LLC, PO BOX 427, STONINGTON CT 06378
Julia K. Davis	director	C/O AMERICA'S CAR-MART, INC., 1805 NORTH 2ND STREET, SUITE 401, ROGERS AR 72756
Leonard L. Walthall	officer: Chief Operating Officer	1805 N. 2ND STREET, SUITE 401, ROGERS AR 72756
Dawn C Morris	director	255 E. FIFTH STREET, CINCINNATI OH 45202
William H Henderson	director, officer: President and CEO	C/O AMERICA'S CARMART, 1805 NORTH 2ND STREET, SUITE 401, ROGERS AR 72756
Gremp Jim Von	director	C/O AMERICA'S CAR-MART, INC., 802 SE PLAZA AVE, SUITE 200, BENTONVILLE AR 72712
Ann G. Bordelon	director	C/O AMERICA'S CAR-MART, INC., 1805 N. 2ND STREET, SUITE 401, ROGERS AR 72756
Daniel J Englander	director	C/O AMERICA'S CARMART, 802 SOUTHEAST PLAZA AVE #200, BENTONVILLE AR 72712
Ray C Dillon	director	C/O AMERICA'S CAR-MART, INC., 1805 N. 2ND STREET, SUITE 401, ROGERS AR 72756
Robert Cameron Smith	director	802 SOUTHEAST PLAZA AVENUE, SUITE 200, BENTONVILLE AR 72712
Vickie D. Judy	officer: Principal Accounting Officer	C/O AMERICA'S CAR-MART, INC., 1805 N. 2ND STREET, SUITE 401, ROGERS AR 72756
Eddie L Hight	officer: Chief Operating Officer	C/O AMERICA'S CARMART, 802 SOUTHEAST PLAZA AVE, #200, BENTONVILLE AR 72712
Adam K Peterson	10 percent owner	1601 DODGE STREET, SUITE 3300, OMAHA NE 68102