Rusta AB (publ) (OSTO:RUSTA) Interest Coverage : 6.67 (As of Jan. 2024)

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What is Rusta AB (publ) 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. Rusta AB (publ)'s Operating Income for the three months ended in Jan. 2024 was kr367 Mil. Rusta AB (publ)'s Interest Expense for the three months ended in Jan. 2024 was kr-55 Mil. Rusta AB (publ)'s interest coverage for the quarter that ended in Jan. 2024 was 6.67. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Rusta AB (publ)'s Interest Coverage or its related term are showing as below:

OSTO:RUSTA' s Interest Coverage Range Over the Past 10 Years
Min: 2.96 Med: 5.39 Max: 5.94
Current: 3.34

OSTO:RUSTA's Interest Coverage is ranked worse than
69.29% of 762 companies
in the Retail - Cyclical industry
Industry Median: 7.825 vs OSTO:RUSTA: 3.34

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

Rusta AB (publ) Interest Coverage Historical Data

The historical data trend for Rusta AB (publ)'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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Rusta AB (publ) Interest Coverage Chart

Rusta AB (publ) Annual Data

Trend

Apr21

Apr22

Apr23

Interest Coverage

5.39

5.94

2.96

Rusta AB (publ) Quarterly Data
	Apr21	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage	Get a 7-Day Free Trial				6.49	-	5.14	2.32	6.67

Competitive Comparison of Rusta AB (publ)'s Interest Coverage

For the Department Stores subindustry, Rusta AB (publ)'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.

Rusta AB (publ)'s Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rusta AB (publ)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Rusta AB (publ)'s Interest Coverage falls into.

Rusta AB (publ) 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.

Rusta AB (publ)'s Interest Coverage for the fiscal year that ended in Apr. 2023 is calculated as

Here, for the fiscal year that ended in Apr. 2023, Rusta AB (publ)'s Interest Expense was kr-176 Mil. Its Operating Income was kr521 Mil. And its Long-Term Debt & Capital Lease Obligation was kr4,668 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Apr. 2023 )	/	Interest Expense (A: Apr. 2023 )
	=	-1	*	521.2	/	-176.3
	=	2.96

Rusta AB (publ)'s Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Rusta AB (publ)'s Interest Expense was kr-55 Mil. Its Operating Income was kr367 Mil. And its Long-Term Debt & Capital Lease Obligation was kr4,830 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	367	/	-55
	=	6.67

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

Rusta AB (publ) (OSTO:RUSTA) 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 .

Rusta AB (publ) Interest Coverage Related Terms

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

Rusta AB (publ) (OSTO:RUSTA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Rusta AB (publ) (OSTO:RUSTA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kanalvagen 12, 4th floor, Upplands Vasby, SWE, SE-194 05

Website

https://investors.rusta.com

Rusta AB (publ) is a leading company in the Nordic variety hard discount market. Its customer promise is to be a modern variety hard discount retailer making it easy to renew and refill at home at surprisingly low prices. It combines an offering of a wide and curated product assortment of everyday products, with good quality that covers frequent customer needs and wants at the lowest prices among comparable products with a convenient and positive in-store shopping experience. It has a wide multi-geographic presence with a network of 203 stores across Sweden, Norway, Finland, and Germany.

Rusta AB (publ) (OSTO:RUSTA) Headlines

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