Acme United (FRA:UT1) Interest Coverage : 5.15 (As of Sep. 2024)

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What is Acme United 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. Acme United's Operating Income for the three months ended in Sep. 2024 was €2.6 Mil. Acme United's Interest Expense for the three months ended in Sep. 2024 was €-0.5 Mil. Acme United's interest coverage for the quarter that ended in Sep. 2024 was 5.15. The higher the ratio, the stronger the company's financial strength is.

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

FRA:UT1' s Interest Coverage Range Over the Past 10 Years
Min: 2.62 Med: 7.76 Max: 15.09
Current: 6.57

FRA:UT1's Interest Coverage is ranked worse than
54.22% of 1435 companies
in the Consumer Packaged Goods industry
Industry Median: 8.26 vs FRA:UT1: 6.57

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

Acme United Interest Coverage Historical Data

The historical data trend for Acme United'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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Acme United Interest Coverage Chart

Acme United Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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4.61

12.09

13.85

2.62

4.26

Acme United Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															4.48	4.18	5.37	11.03	5.15

Competitive Comparison of Acme United's Interest Coverage

For the Household & Personal Products subindustry, Acme United'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.

Acme United's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Acme United's Interest Coverage distribution charts can be found below:

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

Acme United 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.

Acme United'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, Acme United's Interest Expense was €-2.8 Mil. Its Operating Income was €12.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €22.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	12.094	/	-2.839
	=	4.26

Acme United's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Acme United's Interest Expense was €-0.5 Mil. Its Operating Income was €2.6 Mil. And its Long-Term Debt & Capital Lease Obligation was €31.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	2.636	/	-0.512
	=	5.15

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

Acme United (FRA:UT1) 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 .

Acme United Interest Coverage Related Terms

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

Acme United Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Acme United Corp (FRA:UT1) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ACU:USA

Address

1 Waterview Drive, Shelton, CT, USA, 06484

Website

https://www.acmeunited.com

Acme United Corp is a supplier of first aid and medical products and cutting technology to the school, home, office, hardware, sporting goods, and industrial markets. Its principal products sold across all segments are first aid kits and medical products, scissors, shears, knives, rulers, pencil sharpeners, and sharpening tools. The Company sells its products to mass market and e-commerce retailers, industrial distributors, wholesale, contract, and retail stationery distributors, office supply superstores, sporting goods stores, and hardware chains. The Company's reportable business segments consist of the United States, Canada, and Europe, out of which the majority of the company's revenue is derived from the United States.

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