Valtecne SpA (MIL:VLT) Interest Coverage : 39.28 (As of Jun. 2024)

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What is Valtecne 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. Valtecne SpA's Operating Income for the six months ended in Jun. 2024 was €2.91 Mil. Valtecne SpA's Interest Expense for the six months ended in Jun. 2024 was €-0.07 Mil. Valtecne SpA's interest coverage for the quarter that ended in Jun. 2024 was 39.28. The higher the ratio, the stronger the company's financial strength is.

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

MIL:VLT' s Interest Coverage Range Over the Past 10 Years
Min: 29.08 Med: 34.79 Max: 57.74
Current: 57.74

MIL:VLT's Interest Coverage is ranked better than
72.45% of 2287 companies
in the Industrial Products industry
Industry Median: 15.96 vs MIL:VLT: 57.74

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

Valtecne SpA Interest Coverage Historical Data

The historical data trend for Valtecne 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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Valtecne SpA Interest Coverage Chart

Valtecne SpA Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

32.24

37.34

41.65

29.08

No Debt

Valtecne SpA Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Interest Coverage	Get a 7-Day Free Trial				25.71	51.77	13.13	39.28	No Debt

Competitive Comparison of Valtecne SpA's Interest Coverage

For the Specialty Industrial Machinery subindustry, Valtecne 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.

Valtecne SpA's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Valtecne SpA's Interest Coverage distribution charts can be found below:

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

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Valtecne 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.

Valtecne 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, Valtecne SpA's Interest Expense was €-0.16 Mil. Its Operating Income was €4.65 Mil. And its Long-Term Debt & Capital Lease Obligation was €3.99 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4.652	/	-0.16
	=	29.08

Valtecne SpA's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Valtecne SpA's Interest Expense was €-0.07 Mil. Its Operating Income was €2.91 Mil. And its Long-Term Debt & Capital Lease Obligation was €3.91 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2024 )	/	Interest Expense (Q: Jun. 2024 )
	=	-1	*	2.907	/	-0.074
	=	39.28

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

Valtecne SpA (MIL:VLT) 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 .

Valtecne SpA Interest Coverage Related Terms

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