Cofle SpA (MIL:CFL) Interest Coverage : 0.72 (As of Dec. 2023)

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What is Cofle 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. Cofle SpA's Operating Income for the six months ended in Dec. 2023 was €3.97 Mil. Cofle SpA's Interest Expense for the six months ended in Dec. 2023 was €-5.53 Mil. Cofle SpA's interest coverage for the quarter that ended in Dec. 2023 was 0.72. The higher the ratio, the stronger the company's financial strength is.

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

MIL:CFL' s Interest Coverage Range Over the Past 10 Years
Min: 0.82 Med: 4.31 Max: 18.07
Current: 0.82

MIL:CFL's Interest Coverage is ranked worse than
94.52% of 1040 companies
in the Vehicles & Parts industry
Industry Median: 7.815 vs MIL:CFL: 0.82

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

Cofle SpA Interest Coverage Historical Data

The historical data trend for Cofle 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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Cofle SpA Interest Coverage Chart

Cofle SpA Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.31

11.25

18.07

1.62

0.82

Cofle SpA Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial				9.59	10.83	0.75	1.04	0.72

Competitive Comparison of Cofle SpA's Interest Coverage

For the Auto Parts subindustry, Cofle 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.

Cofle SpA's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Cofle SpA's Interest Coverage distribution charts can be found below:

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

Cofle 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.

Cofle 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, Cofle SpA's Interest Expense was €-8.16 Mil. Its Operating Income was €6.71 Mil. And its Long-Term Debt & Capital Lease Obligation was €9.16 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	6.705	/	-8.16
	=	0.82

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

Here, for the six months ended in Dec. 2023, Cofle SpA's Interest Expense was €-5.53 Mil. Its Operating Income was €3.97 Mil. And its Long-Term Debt & Capital Lease Obligation was €9.16 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3.969	/	-5.532
	=	0.72

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

Cofle SpA (MIL:CFL) 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 .

Cofle SpA Interest Coverage Related Terms

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

Cofle SpA (MIL:CFL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Cofle SpA (MIL:CFL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

Y9A:Germany

Address

Via del Ghezzo, 54, Trezzo sullAdda, ITA, 20056

Website

https://www.cofle.com

Cofle SpA designs, produces and sells worldwide control cables and remote control systems for the off-road vehicle, automotive, and automotive after-market sectors. It has two divisions: the Original Equipment Manufacturer (OEM) division through which it manufactures a wide range of highly customized products for customers who install the components on the products sold: through its products, the group deals with customers operating in the agricultural sector, earth-moving and commercial vehicles, and the premium automotive sector; and the After Market (AM) division which manufactures Cofle-branded components such as control cables, brake hoses or EPBs with the same quality as the original for the automotive sector.

Cofle SpA (MIL:CFL) Headlines

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