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BUA Foods (NSA:BUAFOODS) Interest Coverage : 48.77 (As of Sep. 2024)


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What is BUA Foods 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. BUA Foods's Operating Income for the three months ended in Sep. 2024 was ₦99,964 Mil. BUA Foods's Interest Expense for the three months ended in Sep. 2024 was ₦-2,050 Mil. BUA Foods's interest coverage for the quarter that ended in Sep. 2024 was 48.77. The higher the ratio, the stronger the company's financial strength is.

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

NSA:BUAFOODS' s Interest Coverage Range Over the Past 10 Years
Min: 11.39   Med: 12.52   Max: 16.06
Current: 12.49


NSA:BUAFOODS's Interest Coverage is ranked better than
56.3% of 1476 companies
in the Consumer Packaged Goods industry
Industry Median: 8.4 vs NSA:BUAFOODS: 12.49

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


BUA Foods Interest Coverage Historical Data

The historical data trend for BUA Foods'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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BUA Foods Interest Coverage Chart

BUA Foods Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Interest Coverage
13.59 16.06 11.45 11.39

BUA Foods Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 6.92 8.71 6.90 20.44 48.77

Competitive Comparison of BUA Foods's Interest Coverage

For the Packaged Foods subindustry, BUA Foods'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.


BUA Foods's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, BUA Foods's Interest Coverage distribution charts can be found below:

* The bar in red indicates where BUA Foods's Interest Coverage falls into.


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BUA Foods 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.

BUA Foods'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, BUA Foods's Interest Expense was ₦-18,814 Mil. Its Operating Income was ₦214,329 Mil. And its Long-Term Debt & Capital Lease Obligation was ₦1,410 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*214328.546/-18814.243
=11.39

BUA Foods's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, BUA Foods's Interest Expense was ₦-2,050 Mil. Its Operating Income was ₦99,964 Mil. And its Long-Term Debt & Capital Lease Obligation was ₦1,345 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*99964.372/-2049.769
=48.77

* 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.


BUA Foods  (NSA:BUAFOODS) 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 .


BUA Foods Interest Coverage Related Terms

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


BUA Foods Business Description

Traded in Other Exchanges
N/A
Address
Churchgate Street, 3rd Floor BUA Towers, PC 32, P.O.Box 70106, Victoria Island, Lagos, NGA
BUA Foods PLC is involved in the food and fast-moving consumer goods business which processes, manufactures, and distributes food as well as packaged food. The company's business operations comprise five divisions, including Sugar, Flour, Pasta, Rice, and Edible Oils. It has four segments Flour segment, Sugar segment, Pasta segment, and Others. Maximum revenue is from sales of sugar.

BUA Foods Headlines

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