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Digia Oyj (FRA:S2Y) Interest Coverage : 19.87 (As of Dec. 2024)


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What is Digia Oyj 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. Digia Oyj's Operating Income for the three months ended in Dec. 2024 was €5.2 Mil. Digia Oyj's Interest Expense for the three months ended in Dec. 2024 was €-0.3 Mil. Digia Oyj's interest coverage for the quarter that ended in Dec. 2024 was 19.87. The higher the ratio, the stronger the company's financial strength is.

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

FRA:S2Y' s Interest Coverage Range Over the Past 10 Years
Min: 4.15   Med: 19.81   Max: 34.06
Current: 15.37


FRA:S2Y's Interest Coverage is ranked worse than
58.97% of 1672 companies
in the Software industry
Industry Median: 26.095 vs FRA:S2Y: 15.37

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


Digia Oyj Interest Coverage Historical Data

The historical data trend for Digia Oyj'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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Digia Oyj Interest Coverage Chart

Digia Oyj Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.06 28.67 26.51 10.68 11.29

Digia Oyj Quarterly Data
Mar16 Jun16 Sep16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 3.29 10.24 7.64 11.48 19.87

Competitive Comparison of Digia Oyj's Interest Coverage

For the Information Technology Services subindustry, Digia Oyj'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.


Digia Oyj's Interest Coverage Distribution in the Software Industry

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

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


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Digia Oyj 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.

Digia Oyj's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Digia Oyj's Interest Expense was €-1.6 Mil. Its Operating Income was €18.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €15.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*18.227/-1.614
=11.29

Digia Oyj's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Digia Oyj's Interest Expense was €-0.3 Mil. Its Operating Income was €5.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €15.0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*5.186/-0.261
=19.87

* 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.


Digia Oyj  (FRA:S2Y) 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 .


Digia Oyj Interest Coverage Related Terms

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


Digia Oyj Business Description

Traded in Other Exchanges
Address
Atomitie 2A, Helsinki, FIN, 00370
Digia Oyj is a Finnish-based IT service company. Digia comprises four service areas: Digital Solutions, Business Platforms, Financial Platforms, and Managed Solutions The company serves a diverse set of markets, including energy, retail trade, public sector, insurance, manufacturing and service business, banking and investment services and logistics. Geographically, it operates in Finland, Sweden, Netherlands & other countries, out of which the majority of its revenue comes from Finland.

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