Damm (LTS:0OMH) Interest Coverage: 25.84 (As of Dec. 2014)


What is Damm Interest Coverage?

Damm LTS:0OMH Interest Coverage is 25.84 as of Dec. 2014.

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. Damm's Operating Income for the six months ended in Dec. 2014 was €53.84 Mil. Damm's Interest Expense for the six months ended in Dec. 2014 was €-2.08 Mil. Damm's interest coverage for the quarter that ended in Dec. 2014 was 25.84. The higher the ratio, the stronger the company's financial strength is.

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


LTS:0OMH's Interest Coverage is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 8.63
* 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.

Damm  (LTS:0OMH) 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 .

Damm Interest Coverage Related Terms

Damm Interest Coverage Historical Data

* Premium members only.

The historical data trend for Damm'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.

Damm Interest Coverage Chart

Damm Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.43 8.98 31.65 13.07 13.96

Damm Semi-Annual Data
Dec05 Dec06 Dec07 Dec08 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14
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 27.03 124.62 177.73 17.49 25.84

Damm Interest Coverage Competitor Comparison

For the Beverages - Wineries & Distilleries subindustry, Damm'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.

Damm Interest Coverage vs Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Damm's Interest Coverage distribution charts can be found below:

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


Damm 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.

Damm's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, Damm's Interest Expense was €-6.66 Mil. Its Operating Income was €92.95 Mil. And its Long-Term Debt & Capital Lease Obligation was €103.45 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*92.953/-6.66
=13.96

Damm's Interest Coverage for the quarter that ended in Dec. 2014 is calculated as

Here, for the six months ended in Dec. 2014, Damm's Interest Expense was €-2.08 Mil. Its Operating Income was €53.84 Mil. And its Long-Term Debt & Capital Lease Obligation was €103.45 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2014 )/Interest Expense (Q: Dec. 2014 )
=-1*53.835/-2.083
=25.84

* 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 25.84 mean?
Damm (LTS:0OMH) has a Interest Coverage of 25.84 as of Dec. 2014. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Damm and its competitors.
Is Damm's Interest Coverage too high?
Damm's current Interest Coverage is 25.84. The Beverages - Alcoholic industry median Interest Coverage is 8.63. Damm's value of 25.84 is 199.4% above this industry median.
How does Damm's Interest Coverage compare to competitors?
Damm's Interest Coverage of 25.84 can be compared against companies in the Beverages - Alcoholic industry. The industry median Interest Coverage is 8.63. Damm's value of 25.84 is 199.4% 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 8.63, based on 159 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. Damm's current Interest Coverage of 25.84 is 199.4% 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 Damm and its competitors. For the Beverages - Alcoholic industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Damm's current Interest Coverage is 25.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Damm stock overvalued right now?
Damm (LTS:0OMH) has a current Interest Coverage of 25.84. The current Interest Coverage is 25.84 and 199.4% above the Beverages - Alcoholic industry median of 8.63. 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 Damm (LTS:0OMH), the current Interest Coverage is 25.84 as of Dec. 2014. 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.

Damm Business Description

Sociedad Anonima Damm SA is engaged in the manufacturing and distribution of beer. It provides beer under the brand names of Estrella Damm, Voll Damm, Xibeca, Free Damm, Damm Lemon, Bock-Damm, etc.