KKOYY (Kesko Oyj) Interest Coverage : 5.94 (As of Sep. 2024)

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What is Kesko 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. Kesko Oyj's Operating Income for the three months ended in Sep. 2024 was $219 Mil. Kesko Oyj's Interest Expense for the three months ended in Sep. 2024 was $-37 Mil. Kesko Oyj's interest coverage for the quarter that ended in Sep. 2024 was 5.94. The higher the ratio, the stronger the company's financial strength is.

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

KKOYY' s Interest Coverage Range Over the Past 10 Years
Min: 3.27 Med: 7.91 Max: 19.31
Current: 4.79

KKOYY's Interest Coverage is ranked worse than
68.11% of 254 companies
in the Retail - Defensive industry
Industry Median: 9.22 vs KKOYY: 4.79

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

Kesko Oyj Interest Coverage Historical Data

The historical data trend for Kesko 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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Kesko Oyj Interest Coverage Chart

Kesko Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.94

5.54

9.21

10.28

6.41

Kesko Oyj 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															7.74	4.89	3.45	4.69	5.94

Competitive Comparison of Kesko Oyj's Interest Coverage

For the Grocery Stores subindustry, Kesko 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.

Kesko Oyj's Interest Coverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Kesko Oyj's Interest Coverage distribution charts can be found below:

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

Kesko 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.

Kesko Oyj'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, Kesko Oyj's Interest Expense was $-107 Mil. Its Operating Income was $687 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,550 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	687.132	/	-107.197
	=	6.41

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

Here, for the three months ended in Sep. 2024, Kesko Oyj's Interest Expense was $-37 Mil. Its Operating Income was $219 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,635 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	218.979	/	-36.848
	=	5.94

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

Kesko Oyj (OTCPK:KKOYY) 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 .

Kesko Oyj Interest Coverage Related Terms

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

Kesko Oyj Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Kesko Oyj (OTCPK:KKOYY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

KKOYF:USA KKOAF:USA KESKBh:UK 0BNT:UK 0BNS:UK KESKOB:Finland KESKOA:Finland KEK:Germany

Address

Tyopajankatu 12, Helsinki, FIN, 00580

Website

https://www.kesko.fi

Kesko Oyj is a Finland-based retail conglomerate that operates in three divisions: Grocery, Building and Technical, and Car. The Grocery segment provides the customers with K-food retailers running their locally tailored stores, acting in a chain business model. Chains include K-Citymarket, K-Supermarket, K-Market, and Neste K. The Building and Technical Sector produces construction materials, leisure athletic goods, and infrastructure tools and operates out of Scandinavia and Eastern Europe, both in digital and brick-and-mortar stores. The Car division acts as an importer and leaser for various European car brands, including Volkswagen, SEAT, Audi, and Porsche as well as a seller of used cars online and in-store. The Grocery segment in Finland produces the most revenue.