MTL Cannabis (FRA:J4E) Interest Coverage : 0.49 (As of Sep. 2023)

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What is MTL Cannabis 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. MTL Cannabis's Operating Income for the three months ended in Sep. 2023 was €0.51 Mil. MTL Cannabis's Interest Expense for the three months ended in Sep. 2023 was €-1.03 Mil. MTL Cannabis's interest coverage for the quarter that ended in Sep. 2023 was 0.49. The higher the ratio, the stronger the company's financial strength is.

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

FRA:J4E' s Interest Coverage Range Over the Past 10 Years
Min: 1.37 Med: 3.01 Max: 4.16
Current: 1.37

FRA:J4E's Interest Coverage is ranked worse than
93.55% of 31 companies
in the Tobacco Products industry
Industry Median: 11.55 vs FRA:J4E: 1.37

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

MTL Cannabis Interest Coverage Historical Data

The historical data trend for MTL Cannabis'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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MTL Cannabis Interest Coverage Chart

MTL Cannabis Annual Data

Trend

Mar21

Mar22

Mar23

Interest Coverage

1.87

4.16

MTL Cannabis Quarterly Data
	Mar21	Mar22	Jun22	Sep22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial			-	N/A	0.64	0.49	No Debt

Competitive Comparison of MTL Cannabis's Interest Coverage

For the Tobacco subindustry, MTL Cannabis'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.

MTL Cannabis's Interest Coverage Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, MTL Cannabis's Interest Coverage distribution charts can be found below:

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

MTL Cannabis 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.

MTL Cannabis's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, MTL Cannabis's Interest Expense was €-1.31 Mil. Its Operating Income was €-0.81 Mil. And its Long-Term Debt & Capital Lease Obligation was €7.90 Mil.

MTL Cannabis did not have earnings to cover the interest expense.

MTL Cannabis's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, MTL Cannabis's Interest Expense was €-1.03 Mil. Its Operating Income was €0.51 Mil. And its Long-Term Debt & Capital Lease Obligation was €14.00 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	0.509	/	-1.03
	=	0.49

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

MTL Cannabis (FRA:J4E) 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 .

MTL Cannabis Interest Coverage Related Terms

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

MTL Cannabis (FRA:J4E) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » MTL Cannabis Corp (FRA:J4E) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MTLC:Canada

Address

1773 Bayly Street, Pickering, ON, CAN, L1W 2Y7

Website

https://www.mtlcannabis.ca

MTL Cannabis Corp is a flower-first company built for the modern street, MTL Cannabis uses proprietary hydroponic growing methodologies supported by handcrafted techniques to produce products that are truly crafted for the masses. The company focuses on craft quality cannabis products, including lines of dried flower, pre-rolls and hash marketed under the MTL Cannabis, Low Key by MTL and R'belle brands for the Canadian market through nine distribution arrangements with various provincial cannabis distributors. It has also developed a number of export channels for bulk and unbranded GACP quality cannabis.

MTL Cannabis (FRA:J4E) Headlines

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