Paradox Interactive AB (OSTO:PDX) Interest Coverage : 93.16 (As of Mar. 2024)

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What is Paradox Interactive AB 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. Paradox Interactive AB's Operating Income for the three months ended in Mar. 2024 was kr154 Mil. Paradox Interactive AB's Interest Expense for the three months ended in Mar. 2024 was kr-2 Mil. Paradox Interactive AB's interest coverage for the quarter that ended in Mar. 2024 was 93.16. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Paradox Interactive AB has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Paradox Interactive AB's Interest Coverage or its related term are showing as below:

OSTO:PDX' s Interest Coverage Range Over the Past 10 Years
Min: 58.68 Med: 244.5 Max: 62458.43
Current: 74.89

OSTO:PDX's Interest Coverage is ranked better than
57.38% of 305 companies
in the Interactive Media industry
Industry Median: 38.43 vs OSTO:PDX: 74.89

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

Paradox Interactive AB Interest Coverage Historical Data

The historical data trend for Paradox Interactive AB'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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Paradox Interactive AB Interest Coverage Chart

Paradox Interactive AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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58.68

138.03

69.42

129.40

65.37

Paradox Interactive AB Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															51.44	99.59	31.10	83.87	93.16

Competitive Comparison of Paradox Interactive AB's Interest Coverage

For the Electronic Gaming & Multimedia subindustry, Paradox Interactive AB'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.

Paradox Interactive AB's Interest Coverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Paradox Interactive AB's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Paradox Interactive AB's Interest Coverage falls into.

Paradox Interactive AB 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.

Paradox Interactive AB'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, Paradox Interactive AB's Interest Expense was kr-11 Mil. Its Operating Income was kr695 Mil. And its Long-Term Debt & Capital Lease Obligation was kr76 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	695.163	/	-10.635
	=	65.37

Paradox Interactive AB's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Paradox Interactive AB's Interest Expense was kr-2 Mil. Its Operating Income was kr154 Mil. And its Long-Term Debt & Capital Lease Obligation was kr63 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	154.37	/	-1.657
	=	93.16

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

Paradox Interactive AB (OSTO:PDX) 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 .

Paradox Interactive AB Interest Coverage Related Terms

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

Paradox Interactive AB (OSTO:PDX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Paradox Interactive AB (OSTO:PDX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PRXXF:USA 0GDU:UK ETA:Germany

Address

Magnus Ladulasgatan 4, Stockholm, SWE, SE-118 66

Website

https://www.paradoxinteractive.com

Paradox Interactive AB is a Swedish company. It is engaged in the development and publishing of PC-based games. The company's product portfolio includes franchise brands such as g Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities, Skylines, Tyranny and Magicka. Paradox is also involved in the publishing and internal development of games and licensing of White Wolf's brands. The company distributes its games through the digital platform Steam as well as on Apple, Google Play, and Sony stores. It operates its business across the world. The majority of the company's revenue comes from the United States.