AstroNova (FRA:AZO) Interest Coverage : 5.03 (As of Jan. 2024)

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What is AstroNova 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. AstroNova's Operating Income for the three months ended in Jan. 2024 was €3.6 Mil. AstroNova's Interest Expense for the three months ended in Jan. 2024 was €-0.7 Mil. AstroNova's interest coverage for the quarter that ended in Jan. 2024 was 5.03. The higher the ratio, the stronger the company's financial strength is.

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

FRA:AZO' s Interest Coverage Range Over the Past 10 Years
Min: 2.55 Med: 8.12 Max: No Debt
Current: 3.26

FRA:AZO's Interest Coverage is ranked worse than
79.48% of 1584 companies
in the Hardware industry
Industry Median: 12.55 vs FRA:AZO: 3.26

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

AstroNova Interest Coverage Historical Data

The historical data trend for AstroNova'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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AstroNova Interest Coverage Chart

AstroNova Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

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3.57

2.55

6.29

3.24

3.26

AstroNova 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															3.54	2.37	-	7.32	5.03

Competitive Comparison of AstroNova's Interest Coverage

For the Computer Hardware subindustry, AstroNova'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.

AstroNova's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, AstroNova's Interest Coverage distribution charts can be found below:

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

AstroNova 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.

AstroNova's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, AstroNova's Interest Expense was €-2.5 Mil. Its Operating Income was €8.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €9.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	8.075	/	-2.476
	=	3.26

AstroNova's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, AstroNova's Interest Expense was €-0.7 Mil. Its Operating Income was €3.6 Mil. And its Long-Term Debt & Capital Lease Obligation was €9.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	3.593	/	-0.714
	=	5.03

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

AstroNova (FRA:AZO) 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 .

AstroNova Interest Coverage Related Terms

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

AstroNova (FRA:AZO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » AstroNova Inc (FRA:AZO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ALOT:USA AZO:Germany

Address

600 East Greenwich Avenue, West Warwick, RI, USA, 02893

Website

https://www.astronovainc.com

AstroNova Inc designs develops, manufactures and distributes a broad range of specialty printers and data acquisition and analysis systems, including both hardware and software, which incorporate advanced technologies to acquire, store, analyze, and present data in multiple formats. Target markets for its hardware and software products include aerospace, apparel, automotive, avionics, chemicals, computer peripherals, communications, distribution, food and beverage, general manufacturing, packaging and transportation. Its business consists of two segments, Product Identification and Test & Measurement. It derives revenue from The PI segment that includes specialty printing systems and related supplies sold under the QuickLabel, TrojanLabel and GetLabels brand names.