The Convenience Shop Holding (MAL:CVS) Interest Coverage : 3.72 (As of Dec. 2023)

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What is The Convenience Shop Holding 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. The Convenience Shop Holding's Operating Income for the six months ended in Dec. 2023 was €1.49 Mil. The Convenience Shop Holding's Interest Expense for the six months ended in Dec. 2023 was €-0.40 Mil. The Convenience Shop Holding's interest coverage for the quarter that ended in Dec. 2023 was 3.72. 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. The Convenience Shop Holding PLC interest coverage is 3.68, which is low.

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

MAL:CVS' s Interest Coverage Range Over the Past 10 Years
Min: 3.13 Med: 3.41 Max: 3.68
Current: 3.68

MAL:CVS's Interest Coverage is ranked worse than
67.1% of 763 companies
in the Retail - Cyclical industry
Industry Median: 7.82 vs MAL:CVS: 3.68

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

The Convenience Shop Holding Interest Coverage Historical Data

The historical data trend for The Convenience Shop Holding'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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The Convenience Shop Holding Interest Coverage Chart

The Convenience Shop Holding Annual Data

Trend

Dec22

Dec23

Interest Coverage

3.13

3.68

The Convenience Shop Holding Semi-Annual Data
	Jun22	Dec22	Jun23	Dec23
Interest Coverage	2.40	3.84	3.65	3.72

Competitive Comparison of The Convenience Shop Holding's Interest Coverage

For the Department Stores subindustry, The Convenience Shop Holding'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.

The Convenience Shop Holding's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Convenience Shop Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Convenience Shop Holding's Interest Coverage falls into.

The Convenience Shop Holding 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.

The Convenience Shop Holding'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, The Convenience Shop Holding's Interest Expense was €-0.82 Mil. Its Operating Income was €3.04 Mil. And its Long-Term Debt & Capital Lease Obligation was €17.23 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3.036	/	-0.824
	=	3.68

The Convenience Shop Holding's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, The Convenience Shop Holding's Interest Expense was €-0.40 Mil. Its Operating Income was €1.49 Mil. And its Long-Term Debt & Capital Lease Obligation was €17.23 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1.486	/	-0.399
	=	3.72

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

The Convenience Shop Holding (MAL:CVS) 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 .

The Convenience Shop Holding Interest Coverage Related Terms

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The Convenience Shop Holding (MAL:CVS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Convenience Shop Holding PLC (MAL:CVS) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Mdina Road, Marant Food Products, Zebbug, MLT, 9017

Website

https://www.theconvenienceshop.com

The Convenience Shop Holding PLC operates and franchises grocery stores in the fast-moving consumer goods ('FMCG') industry. Through its subsidiaries, the Company manages a chain of retail outlets under The Convenience Shop brand in various locations across Malta. The Group currently operates approximately 40 shops of which 4 shops are owned by minority shareholders and 1 shop (The Convenience Shop for Puttinu Cares Ltd) is operated for charity.