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. Schmitt Industries's
Operating Income
for the
three
months ended in May. 2022 was $-3.43 Mil. Schmitt Industries's Interest Expense for the
three
months ended in May. 2022 was $-0.01 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 Schmitt Industries's Interest Coverage or its related term are showing as below:
SMIT's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 13.79 * Ranked among companies with meaningful Interest Coverage only.
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 .
Schmitt Industries Interest Coverage Related Terms
Schmitt Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Schmitt Industries'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.
SMIT vs WHD, VAL, NOV: Interest Coverage Comparison
For the Scientific & Technical Instruments subindustry, Schmitt Industries'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.
Schmitt Industries Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Schmitt Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Schmitt Industries's Interest Coverage falls into.
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:
Schmitt Industries 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?
Schmitt Industries (SMIT) has a Interest Coverage of 0 (At Loss) as of May. 2022. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Schmitt Industries and its competitors.
Is Schmitt Industries' Interest Coverage too high?
Schmitt Industries' current Interest Coverage is 0 (At Loss). Overall, Schmitt Industries has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Schmitt Industries' Interest Coverage compare to WHD and VAL?
Schmitt Industries' Interest Coverage of 0 (At Loss) can be compared against companies in the Hardware industry. The industry median Interest Coverage is 13.79. 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.79, based on 1,671 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 Schmitt Industries and its competitors. For the Hardware industry, the median Interest Coverage is 13.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Schmitt Industries'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 Schmitt Industries stock overvalued right now?
Schmitt Industries (SMIT) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Schmitt Industries' overall GF Score™ is 12/100. 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 Schmitt Industries (SMIT), the current Interest Coverage is 0 (At Loss) as of May. 2022. 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.
Schmitt Industries Inc is engaged in propane tank monitoring solutions, precision measurement solutions, and ice cream production and distribution. The Company operates as two reportable segments: the Measurement Segment and the Ice Cream Segment. The company manufactures and sells products in two core product lines, Acuity Lasers and Xact Tank Monitoring.
12GF Score
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