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MercadoLibre (MercadoLibre) Interest Coverage : 13.89 (As of Mar. 2024)


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What is MercadoLibre 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. MercadoLibre's Operating Income for the three months ended in Mar. 2024 was $528 Mil. MercadoLibre's Interest Expense for the three months ended in Mar. 2024 was $-38 Mil. MercadoLibre's interest coverage for the quarter that ended in Mar. 2024 was 13.89. The higher the ratio, the stronger the company's financial strength is.

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

MELI' s Interest Coverage Range Over the Past 10 Years
Min: 1.2   Med: 5.15   Max: 14.58
Current: 6.25


MELI's Interest Coverage is ranked worse than
55.77% of 762 companies
in the Retail - Cyclical industry
Industry Median: 7.825 vs MELI: 6.25

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


MercadoLibre Interest Coverage Historical Data

The historical data trend for MercadoLibre'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.

* Premium members only.

MercadoLibre Interest Coverage Chart

MercadoLibre Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 1.20 1.93 3.22 4.82

MercadoLibre Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.29 6.07 6.17 2.96 13.89

Competitive Comparison of MercadoLibre's Interest Coverage

For the Internet Retail subindustry, MercadoLibre'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.


MercadoLibre's Interest Coverage Distribution in the Retail - Cyclical Industry

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

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



MercadoLibre 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.

MercadoLibre'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, MercadoLibre's Interest Expense was $-378 Mil. Its Operating Income was $1,823 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,875 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1823/-378
=4.82

MercadoLibre's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, MercadoLibre's Interest Expense was $-38 Mil. Its Operating Income was $528 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,877 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*528/-38
=13.89

* 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.


MercadoLibre  (NAS:MELI) 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 .


MercadoLibre Interest Coverage Related Terms

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


MercadoLibre (MercadoLibre) Business Description

Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 148 million active users and 1 million active sellers as of the end of 2022 across an 18-country footprint. The company also operates a host of complementary businesses, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Executives
De La Serna Juan Martin officer: Executive VP Corporate Affairs AV. PTE. PERON 2375, LOTE MN04, PILAR, BUENOS AIRES C1 1629
Emiliano Calemzuk director C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Petroni Merhy Andrea Mayumi director HOUSE B, 32 STANLEY VILLAGE ROAD, STANLEY K3 000000
Marcelo Melamud officer: V. P. Chief Accounting Officer TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Richard A Sanders director 80 PALL MALL, LONDON X0 SW1Y 5ES
Ariel Szarfsztejn officer: Executive VP - Commerce POSTA 4789, 6TH FLOOR, BUENOS AIRES C1 C1430CRG
Henrique Vasoncelos Dubugras director 1000 LAUREL WAY, BEVERLY HILLS CA 90210
Alejandro Nicolas Aguzin director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430DNN
Meyer Malka director 364 UNIVERSITY AVENUE, PALO ALTO CA 94301
Roberto Balls Sallouti director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1 C1430CRG
Stelleo Tolda officer: Country Manager Brazil C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Daniel Rabinovich officer: VP-Chief Technology Officer ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
A Michael Spence director 121 INNOVATION DR STE 200, IRVINE CA 92612
Pedro Arnt officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG

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