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. The Real Good Food Co's
Operating Income
for the
three
months ended in Sep. 2023 was $-8.9 Mil. The Real Good Food Co's Interest Expense for the
three
months ended in Sep. 2023 was $-4.3 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Real Good Food Co's Interest Coverage or its related term are showing as below:
RGFC's Interest Coverage is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 8.63 * Ranked among companies with meaningful Interest Coverage only.
The Real Good Food Co (OTCPK:RGFC) 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 .
The Real Good Food Co Interest Coverage Related Terms
The Real Good Food Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for The Real Good Food Co'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.
RGFC vs PLAG, NAII, FARM: Interest Coverage Comparison
For the Packaged Foods subindustry, The Real Good Food Co'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.
The Real Good Food Co Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Real Good Food Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Real Good Food Co's Interest Coverage falls into.
The Real Good Food Co 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:
The Real Good Food Co did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
The Real Good Food Co (RGFC) has a Interest Coverage of 0 (At Loss) as of Sep. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Real Good Food Co and its competitors.
Is The Real Good Food Co's Interest Coverage too high?
The Real Good Food Co's current Interest Coverage is 0 (At Loss). Overall, The Real Good Food Co has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does The Real Good Food Co's Interest Coverage compare to PLAG and NAII?
The Real Good Food Co's Interest Coverage of 0 (At Loss) can be compared against companies in the Consumer Packaged Goods industry. The industry median Interest Coverage is 8.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.63, based on 1,511 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Real Good Food Co and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Real Good Food Co's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Real Good Food Co stock overvalued right now?
The Real Good Food Co (RGFC) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). The Real Good Food Co's overall GF Score™ is 14/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The Real Good Food Co (RGFC), the current Interest Coverage is 0 (At Loss) as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
The Real Good Food Co Inc is a frozen food company that develops, markets, and manufactures foods high in protein, low in sugar, and gluten- and grain-free. The company produces breakfast sandwiches, entrees, and other products, primarily sold in the U.S. frozen food category. All of its revenue is derived from the United States.
14GF Score
Get the complete analysis for RGFC
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