Otofarma SpAMIL:OTO -0.71%16 Interest Coverage is 7.62 as of Dec. 2024, which is 7% below its 10-year median of 8.16. GuruFocus rates MIL:OTO with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 466 Medical Devices & Instruments companies, Otofarma SpA ranks worse than 65.02% on this metric.
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. Otofarma SpA's
Operating Income
for the
six
months ended in Dec. 2024 was €1.94 Mil. Otofarma SpA's Interest Expense for the
six
months ended in Dec. 2024 was €-0.25 Mil.
Otofarma SpA's interest coverage for the quarter that ended in Dec. 2024 was 7.62.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Otofarma SpA's Interest Coverage or its related term are showing as below:
MIL:OTO'
s Interest Coverage Range Over the Past 10 Years
Min: 7.62 Med: 8.16 Max: 8.69
Current: 7.62
MIL:OTO's Interest Coverage is ranked worse than 65.02% of 466
companies
in the Medical Devices & Instruments industry
Industry Median: 15.875
vs MIL:OTO: 7.62
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 .
Otofarma SpA Interest Coverage Related Terms
Otofarma SpA Interest Coverage Historical Data
* Premium members only.
The historical data trend for Otofarma 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.
Otofarma SpA Interest Coverage Chart
Otofarma SpA Annual Data
Trend
Dec23
Dec24
Interest Coverage
8.69
7.62
Otofarma SpA Semi-Annual Data
Dec23
Dec24
Interest Coverage
8.69
7.62
MIL:OTO vs ABT, SYK, MDT: Interest Coverage Comparison
For the Medical Devices subindustry, Otofarma 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.
Otofarma SpA Interest Coverage vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Otofarma SpA's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Otofarma SpA's Interest Coverage falls into.
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:
* 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.
Otofarma SpA (MIL:OTO) has a Interest Coverage of 7.62 as of Dec. 2024. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Otofarma SpA and its competitors. This is near median its historical median of 8.16. Over the past decade, Otofarma SpA's Interest Coverage has ranged from 7.62 to 8.69. According to the industry distribution chart, Otofarma SpA ranks #303 out of 466 companies in the Medical Devices & Instruments industry, placing it in the top 65%.
Is Otofarma SpA's Interest Coverage too high?
Otofarma SpA's current Interest Coverage of 7.62 is near median its 10-year median of 8.16. Over the past 10 years, this metric has ranged from a low of 7.62 to a high of 8.69. The Medical Devices & Instruments industry median Interest Coverage is 15.88. Otofarma SpA's value of 7.62 is 52% below this industry median. Based on the distribution chart, Otofarma SpA ranks #303 out of 466 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's Interest Coverage compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Otofarma SpA ranks #303 out of 466 companies for Interest Coverage. This places Otofarma SpA in the lower half of its industry. The industry median Interest Coverage is 15.88. Otofarma SpA's value of 7.62 is 52% below this benchmark. Historically, Otofarma SpA's own Interest Coverage has ranged from 7.62 to 8.69 over the past decade. While the company's 10-year median is 8.16 vs. the industry median of 15.88, Otofarma SpA has consistently been below the industry average. 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 Medical Devices & Instruments company?
The median Interest Coverage among Medical Devices & Instruments companies is 15.88, based on 466 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. Otofarma SpA's current Interest Coverage of 7.62 is 52% below 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 Otofarma SpA and its competitors. For the Medical Devices & Instruments industry, the median Interest Coverage is 15.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otofarma SpA's current Interest Coverage is 7.62, which is near median its own 10-year median of 8.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current Interest Coverage of 7.62. The current Interest Coverage is 7.62, which is near median its 10-year median of 8.16 and 52% below the Medical Devices & Instruments industry median of 15.88. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign to review. 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 Otofarma SpA (MIL:OTO), the current Interest Coverage is 7.62 as of Dec. 2024. 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.
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score
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