Ringmetall SE (FRA:HP3A) Interest Coverage : 4.48 (As of Dec. 2023)

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What is Ringmetall SE 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. Ringmetall SE's Operating Income for the six months ended in Dec. 2023 was €2.8 Mil. Ringmetall SE's Interest Expense for the six months ended in Dec. 2023 was €-0.6 Mil. Ringmetall SE's interest coverage for the quarter that ended in Dec. 2023 was 4.48. The higher the ratio, the stronger the company's financial strength is.

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

FRA:HP3A' s Interest Coverage Range Over the Past 10 Years
Min: 0.79 Med: 6.4 Max: 30.14
Current: 7.48

FRA:HP3A's Interest Coverage is ranked worse than
62.94% of 2280 companies
in the Industrial Products industry
Industry Median: 13.775 vs FRA:HP3A: 7.48

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

Ringmetall SE Interest Coverage Historical Data

The historical data trend for Ringmetall SE'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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Ringmetall SE Interest Coverage Chart

Ringmetall SE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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4.49

5.16

22.21

30.14

7.48

Ringmetall SE Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															26.00	36.30	24.48	9.67	4.48

Competitive Comparison of Ringmetall SE's Interest Coverage

For the Tools & Accessories subindustry, Ringmetall SE'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.

Ringmetall SE's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ringmetall SE's Interest Coverage distribution charts can be found below:

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

Ringmetall SE 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.

Ringmetall SE'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, Ringmetall SE's Interest Expense was €-1.5 Mil. Its Operating Income was €11.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €19.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	11.18	/	-1.495
	=	7.48

Ringmetall SE's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Ringmetall SE's Interest Expense was €-0.6 Mil. Its Operating Income was €2.8 Mil. And its Long-Term Debt & Capital Lease Obligation was €19.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2.824	/	-0.631
	=	4.48

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

Ringmetall SE (FRA:HP3A) 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 .

Ringmetall SE Interest Coverage Related Terms

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

Ringmetall SE (FRA:HP3A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Ringmetall SE (FRA:HP3A) » Definitions » Interest Coverage

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HP3A:Germany

Address

Innere Wiener Street 9, Munich, BY, DEU, 81667

Website

https://www.ringmetall.de

Ringmetall SE is a supplier in the packaging industry with a focus on packaging elements in the field of industrial drums. Its main activities are allocated to the Industrial Packaging and Industrial Handling business units. The majority of its revenue is generated from industrial packaging segment. The products offered by the group are Clamping rings and lids, Vehicle attachment parts, and other products, of which a majority of the revenue is generated from the sales of Clamping rings and lids. The Industrial packaging segment covers the production and sale of clamping rings and the associated closures, whereas the Industrial Handling segment includes the production and marketing of vehicle attachment parts for special vehicles in logistics and warehouse logistics as well as agriculture.

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