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Olaplex Holdings (Olaplex Holdings) Interest Coverage : 0.89 (As of Dec. 2023)


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What is Olaplex Holdings 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. Olaplex Holdings's Operating Income for the three months ended in Dec. 2023 was $24.6 Mil. Olaplex Holdings's Interest Expense for the three months ended in Dec. 2023 was $-27.7 Mil. Olaplex Holdings's interest coverage for the quarter that ended in Dec. 2023 was 0.89. The higher the ratio, the stronger the company's financial strength is.

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

OLPX' s Interest Coverage Range Over the Past 10 Years
Min: 2   Med: 5.52   Max: No Debt
Current: 2


OLPX's Interest Coverage is ranked worse than
80.95% of 756 companies
in the Retail - Cyclical industry
Industry Median: 7.87 vs OLPX: 2.00

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


Olaplex Holdings Interest Coverage Historical Data

The historical data trend for Olaplex Holdings'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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Olaplex Holdings Interest Coverage Chart

Olaplex Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
No Debt 2.65 5.52 8.36 2.00

Olaplex Holdings Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 3.77 3.37 1.84 3.86 0.89

Competitive Comparison of Olaplex Holdings's Interest Coverage

For the Specialty Retail subindustry, Olaplex Holdings'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.


Olaplex Holdings's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Olaplex Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Olaplex Holdings's Interest Coverage falls into.



Olaplex Holdings 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.

Olaplex Holdings'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, Olaplex Holdings's Interest Expense was $-58.0 Mil. Its Operating Income was $115.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $649.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*115.626/-57.954
=2.00

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

Here, for the three months ended in Dec. 2023, Olaplex Holdings's Interest Expense was $-27.7 Mil. Its Operating Income was $24.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $649.0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*24.567/-27.695
=0.89

* 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.


Olaplex Holdings  (NAS:OLPX) 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 .


Olaplex Holdings Interest Coverage Related Terms

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


Olaplex Holdings (Olaplex Holdings) Business Description

Traded in Other Exchanges
N/A
Address
1187 Coast Village Road, Suite 1-520, Santa Barbara, CA, USA, 93108
Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies consumers' most relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through a global omnichannel platform serving the professional, specialty retail, and DTC channels. The company derives its revenue through the sale of its specialty hair care products.
Executives
John P Bilbrey director
Advent International Gp, Llc director, 10 percent owner 800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
David M Mussafer director C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104
Tricia Glynn director C/O ADVENT INERNATIONAL CORPORATION, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199
Michael James White director C/O ADVENT INTERNATIONAL, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199
Eric Tiziani officer: Chief Financial Officer 1187 COAST VILLAGE ROAD, SUITE 1-520, SANTA BARBARA CA 93108
Kristi A Belhumeur officer: See Remarks 6312 S FIDDLERS GREEN CIRCLE, SUITE 200N, GREENWOOD VILLAGE CO 80111
Morfitt Martha A M director P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Advent International Corp/ma director, 10 percent owner 800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
Advent Partners Gpe Ix-b Cayman Limited Partnership director, 10 percent owner C/O ADVENT INTERNATIONAL CORPORATION, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069
Emily White director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Christine Dagousset director 9 W 57TH STREET, C/O CHANEL, NEW YORK NY 10019
Tiffany Walden director, officer: See Remarks 1187 COAST VILLAGE ROAD, SUITE 1-520, SANTA BARBARA CA 93108
Paula Zusi director 481 MYRTLE AVENUE, OCEANPORT NJ 07757
Janet Gurwitch director 1284 NORTH TELEGRPAH, MONROE MI 48162

Olaplex Holdings (Olaplex Holdings) Headlines

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