Grupo Comercial Gomo de CV (MEX:GOMO) Interest Coverage: 8.57 (As of Mar. 2015)


What is Grupo Comercial Gomo de CV Interest Coverage?

Grupo Comercial Gomo de CV MEX:GOMO Interest Coverage is 8.57 as of Mar. 2015.

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. Grupo Comercial Gomo de CV's Operating Income for the three months ended in Mar. 2015 was MXN927 Mil. Grupo Comercial Gomo de CV's Interest Expense for the three months ended in Mar. 2015 was MXN-108 Mil. Grupo Comercial Gomo de CV's interest coverage for the quarter that ended in Mar. 2015 was 8.57. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Grupo Comercial Gomo de CV's Interest Coverage or its related term are showing as below:


MEX:GOMO's Interest Coverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.96
* 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.

Grupo Comercial Gomo de CV  (MEX:GOMO) 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 .

Grupo Comercial Gomo de CV Interest Coverage Related Terms

Grupo Comercial Gomo de CV Interest Coverage Historical Data

* Premium members only.

The historical data trend for Grupo Comercial Gomo de CV'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.

Grupo Comercial Gomo de CV Interest Coverage Chart

Grupo Comercial Gomo de CV Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Interest Coverage
Get a 7-Day Free Trial 4.95 4.66 4.51 5.05 7.00

Grupo Comercial Gomo de CV Quarterly Data
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
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 6.08 8.84 6.84 6.63 8.57

MEX:GOMO vs KIRK: Interest Coverage Comparison

For the Specialty Retail subindustry, Grupo Comercial Gomo de CV'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.

Grupo Comercial Gomo de CV Interest Coverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Grupo Comercial Gomo de CV's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Grupo Comercial Gomo de CV's Interest Coverage falls into.


Grupo Comercial Gomo de CV 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.

Grupo Comercial Gomo de CV'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, Grupo Comercial Gomo de CV's Interest Expense was MXN-493 Mil. Its Operating Income was MXN3,453 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN3,215 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*3452.513/-493.069
=7.00

Grupo Comercial Gomo de CV's Interest Coverage for the quarter that ended in Mar. 2015 is calculated as

Here, for the three months ended in Mar. 2015, Grupo Comercial Gomo de CV's Interest Expense was MXN-108 Mil. Its Operating Income was MXN927 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN2,669 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2015 )/Interest Expense (Q: Mar. 2015 )
=-1*927.378/-108.21
=8.57

* 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 8.57 mean?
Grupo Comercial Gomo de CV (MEX:GOMO) has a Interest Coverage of 8.57 as of Mar. 2015. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Grupo Comercial Gomo de CV and its competitors.
Is Grupo Comercial Gomo de CV's Interest Coverage too high?
Grupo Comercial Gomo de CV's current Interest Coverage is 8.57. The Retail - Cyclical industry median Interest Coverage is 7.96. Grupo Comercial Gomo de CV's value of 8.57 is 7.7% above this industry median.
How does Grupo Comercial Gomo de CV's Interest Coverage compare to KIRK?
Grupo Comercial Gomo de CV's Interest Coverage of 8.57 can be compared against companies in the Retail - Cyclical industry. The industry median Interest Coverage is 7.96. Grupo Comercial Gomo de CV's value of 8.57 is 7.7% 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.96, based on 825 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. Grupo Comercial Gomo de CV's current Interest Coverage of 8.57 is 7.7% 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 Grupo Comercial Gomo de CV and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupo Comercial Gomo de CV's current Interest Coverage is 8.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupo Comercial Gomo de CV stock overvalued right now?
Grupo Comercial Gomo de CV (MEX:GOMO) has a current Interest Coverage of 8.57. The current Interest Coverage is 8.57 and 7.7% above the Retail - Cyclical industry median of 7.96. 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 Grupo Comercial Gomo de CV (MEX:GOMO), the current Interest Coverage is 8.57 as of Mar. 2015. 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.

Grupo Comercial Gomo de CV Business Description

Address Boulevard Adolfo Lopez Mateos 2370, Segundo Piso, Colonia Altavista, Mexico DF, MEX, 01060
Grupo Comercial Gomo SA de CV is a Mexico-based company engaged in the sale, distribution, purchase, representation, import and export of various types of consumer electronic goods and household appliances, as well as motorcycles.