Rotala (LSE:ROL) Interest Coverage : 1.61 (As of May. 2023)

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What is Rotala 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. Rotala's Operating Income for the six months ended in May. 2023 was £2.25 Mil. Rotala's Interest Expense for the six months ended in May. 2023 was £-1.40 Mil. Rotala's interest coverage for the quarter that ended in May. 2023 was 1.61. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Rotala PLCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

LSE:ROL' s Interest Coverage Range Over the Past 10 Years
Min: 0.48 Med: 2.9 Max: 3.81
Current: 0.87

LSE:ROL's Interest Coverage is not ranked
in the Transportation industry.
Industry Median: 5.41 vs LSE:ROL: 0.87

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

Rotala Interest Coverage Historical Data

The historical data trend for Rotala'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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Rotala Interest Coverage Chart

Rotala Annual Data

Trend

Nov13

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Interest Coverage

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3.47

3.29

0.48

0.57

0.49

Rotala Semi-Annual Data
	Nov13	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23
Interest Coverage	Get a 7-Day Free Trial															0.92	0.24	1.00	-	1.61

Competitive Comparison of Rotala's Interest Coverage

For the Railroads subindustry, Rotala'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.

Rotala's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Rotala's Interest Coverage distribution charts can be found below:

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

Rotala 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.

Rotala's Interest Coverage for the fiscal year that ended in Nov. 2022 is calculated as

Here, for the fiscal year that ended in Nov. 2022, Rotala's Interest Expense was £-2.31 Mil. Its Operating Income was £1.12 Mil. And its Long-Term Debt & Capital Lease Obligation was £30.38 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Nov. 2022 )	/	Interest Expense (A: Nov. 2022 )
	=	-1	*	1.122	/	-2.312
	=	0.49

Rotala's Interest Coverage for the quarter that ended in May. 2023 is calculated as

Here, for the six months ended in May. 2023, Rotala's Interest Expense was £-1.40 Mil. Its Operating Income was £2.25 Mil. And its Long-Term Debt & Capital Lease Obligation was £25.56 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: May. 2023 )	/	Interest Expense (Q: May. 2023 )
	=	-1	*	2.248	/	-1.396
	=	1.61

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

Rotala (LSE:ROL) 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 .

Rotala Interest Coverage Related Terms

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

Rotala (LSE:ROL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Rotala PLC (LSE:ROL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Hallbridge Way, Tipton Road, Cross Quays Business Park, Tividale, Oldbury, West Midlands, GBR, B69 3HW

Website

https://www.rotalaplc.com

Rotala PLC is a UK based company, operates commercial and subsidized bus routes for businesses, local authorities, the public, and private individuals. It operates its business through Contracted, Commercial and Charter segments. It has operations across the United Kingdom including, the North West, West Midlands, South West, and Heathrow and Gatwick airports. The Contracted and Charter Services are usually delivered against an agreed service level agreement and the Commercial segment is engaged in providing passenger loading services. The company derives majority of its revenue from the Commercial segment.