Borgosesia SpA (MIL:BO) Interest Coverage : 0.62 (As of Dec. 2023)

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What is Borgosesia SpA 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. Borgosesia SpA's Operating Income for the six months ended in Dec. 2023 was €1.98 Mil. Borgosesia SpA's Interest Expense for the six months ended in Dec. 2023 was €-3.20 Mil. Borgosesia SpA's interest coverage for the quarter that ended in Dec. 2023 was 0.62. 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. Borgosesia SpAs 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 Borgosesia SpA's Interest Coverage or its related term are showing as below:

MIL:BO' s Interest Coverage Range Over the Past 10 Years
Min: 0.38 Med: 0.66 Max: No Debt
Current: 0.38

MIL:BO's Interest Coverage is ranked worse than
96.91% of 712 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.165 vs MIL:BO: 0.38

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

Borgosesia SpA Interest Coverage Historical Data

The historical data trend for Borgosesia SpA'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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Borgosesia SpA Interest Coverage Chart

Borgosesia SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.19

0.44

0.66

0.38

Borgosesia SpA Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	0.10	1.18	0.06	0.62

Competitive Comparison of Borgosesia SpA's Interest Coverage

For the Textile Manufacturing subindustry, Borgosesia SpA'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.

Borgosesia SpA's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Borgosesia SpA's Interest Coverage distribution charts can be found below:

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

Borgosesia SpA 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.

Borgosesia SpA'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, Borgosesia SpA's Interest Expense was €-5.56 Mil. Its Operating Income was €2.11 Mil. And its Long-Term Debt & Capital Lease Obligation was €42.31 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2.113	/	-5.556
	=	0.38

Borgosesia SpA's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Borgosesia SpA's Interest Expense was €-3.20 Mil. Its Operating Income was €1.98 Mil. And its Long-Term Debt & Capital Lease Obligation was €42.31 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1.982	/	-3.2
	=	0.62

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

Borgosesia SpA (MIL:BO) 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 .

Borgosesia SpA Interest Coverage Related Terms

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

Borgosesia SpA (MIL:BO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Borgosesia SpA (MIL:BO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Viale Majno, 10, Milano, ITA, 20129

Website

http://www.borgosesiaspa.com

Borgosesia SpA is a joint-stock company active in the field of investments in alternative assets as well as in its management on behalf of third-party investors. The company is engaged in the acquisition of real estate assets mainly buildings for residential use that are under construction. The group is represented by real estate with a focus on the purchase of properties to be completed or revitalized mainly for residential use located in large urban and tourist centers. Its properties include Cernobbio, Green Villas, LargoArtide, and Lainate Business park. The mission of Borgosesia is to create value for large and small investors, seizing the opportunities offered by investments that have limited risk but high potential in corporate crisis situations or one which needs new impetus.

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