Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUBC1) Interest Coverage: 249.53 (As of Dec. 2018)


LIM:BACKUBC1 Union de Cervecerias Peruanas Backus & Johnston SA LIM:BACKUBC1
23 GF Score
Price S/.245.10
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What is Union de Cervecerias Peruanas Backus & Johnston Interest Coverage?

Union de Cervecerias Peruanas Backus & Johnston LIM:BACKUBC1 23 Interest Coverage is 249.53 as of Dec. 2018. GuruFocus rates LIM:BACKUBC1 with a GF Score™ of 23/100.

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. Union de Cervecerias Peruanas Backus & Johnston's Operating Income for the six months ended in Dec. 2018 was S/.2,542 Mil. Union de Cervecerias Peruanas Backus & Johnston's Interest Expense for the six months ended in Dec. 2018 was S/.-10 Mil. Union de Cervecerias Peruanas Backus & Johnston's interest coverage for the quarter that ended in Dec. 2018 was 249.53. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage or its related term are showing as below:


LIM:BACKUBC1's Interest Coverage is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 8.56
* Ranked among companies with meaningful Interest Coverage only.

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

Union de Cervecerias Peruanas Backus & Johnston  (LIM:BACKUBC1) 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 .

Union de Cervecerias Peruanas Backus & Johnston Interest Coverage Related Terms

Union de Cervecerias Peruanas Backus & Johnston Interest Coverage Historical Data

* Premium members only.

The historical data trend for Union de Cervecerias Peruanas Backus & Johnston'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.

Union de Cervecerias Peruanas Backus & Johnston Interest Coverage Chart

Union de Cervecerias Peruanas Backus & Johnston Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.93 44.05 40.12 123.47 249.53

Union de Cervecerias Peruanas Backus & Johnston Semi-Annual Data
Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
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 35.93 44.05 40.12 123.47 249.53

Union de Cervecerias Peruanas Backus & Johnston Interest Coverage Competitor Comparison

For the Beverages - Brewers subindustry, Union de Cervecerias Peruanas Backus & Johnston'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.

Union de Cervecerias Peruanas Backus & Johnston Interest Coverage vs Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage falls into.


LIM:BACKUBC1
23GF Score
Union de Cervecerias Peruanas Backus & Johnston SA LIM:BACKUBC1
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Union de Cervecerias Peruanas Backus & Johnston 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.

Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Union de Cervecerias Peruanas Backus & Johnston's Interest Expense was S/.-10 Mil. Its Operating Income was S/.2,542 Mil. And its Long-Term Debt & Capital Lease Obligation was S/.71 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2018 )/Interest Expense (A: Dec. 2018 )
=-1*2542.259/-10.188
=249.53

Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the six months ended in Dec. 2018, Union de Cervecerias Peruanas Backus & Johnston's Interest Expense was S/.-10 Mil. Its Operating Income was S/.2,542 Mil. And its Long-Term Debt & Capital Lease Obligation was S/.71 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2018 )/Interest Expense (Q: Dec. 2018 )
=-1*2542.259/-10.188
=249.53

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 249.53 mean?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUBC1) has a Interest Coverage of 249.53 as of Dec. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Union de Cervecerias Peruanas Backus & Johnston and its competitors.
Is Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage too high?
Union de Cervecerias Peruanas Backus & Johnston's current Interest Coverage is 249.53. The Beverages - Alcoholic industry median Interest Coverage is 8.56. Union de Cervecerias Peruanas Backus & Johnston's value of 249.53 is 2815.1% above this industry median. Overall, Union de Cervecerias Peruanas Backus & Johnston has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage compare to competitors?
Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage of 249.53 can be compared against companies in the Beverages - Alcoholic industry. The industry median Interest Coverage is 8.56. Union de Cervecerias Peruanas Backus & Johnston's value of 249.53 is 2815.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Beverages - Alcoholic company?
The median Interest Coverage among Beverages - Alcoholic companies is 8.56, based on 158 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Union de Cervecerias Peruanas Backus & Johnston's current Interest Coverage of 249.53 is 2815.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Union de Cervecerias Peruanas Backus & Johnston and its competitors. For the Beverages - Alcoholic industry, the median Interest Coverage is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union de Cervecerias Peruanas Backus & Johnston's current Interest Coverage is 249.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union de Cervecerias Peruanas Backus & Johnston stock overvalued right now?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUBC1) has a current Interest Coverage of 249.53. The current Interest Coverage is 249.53 and 2815.1% above the Beverages - Alcoholic industry median of 8.56. Union de Cervecerias Peruanas Backus & Johnston's overall GF Score™ is 23/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUBC1), the current Interest Coverage is 249.53 as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Union de Cervecerias Peruanas Backus & Johnston Business Description

Address Nicolas Ayllon Number 3986, Ate, Lima, PER
Union de Cervecerias Peruanas Backus & Johnston SA is engaged in the business of production, packaging, sale, distribution, and all other types of business related to malted and malt beverages, non-alcoholic beverages, and carbonated waters. The company's main business also includes investment in securities of domestic and foreign companies; the exploitation of rural properties; the sale, processing, conservation, marketing, and export of agricultural products; and the provision of advisory services related to these products.
23GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

S/.245.10
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