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. Sprout Tiny Homes's
Operating Income
for the
three
months ended in Mar. 2023 was $-0.13 Mil. Sprout Tiny Homes's Interest Expense for the
three
months ended in Mar. 2023 was $-0.08 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 Sprout Tiny Homes's Interest Coverage or its related term are showing as below:
STHI's Interest Coverage is not ranked *
in the Homebuilding & Construction industry.
Industry Median: 8.305 * Ranked among companies with meaningful Interest Coverage only.
Sprout Tiny Homes (OTCPK:STHI) 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 .
Sprout Tiny Homes Interest Coverage Related Terms
Sprout Tiny Homes Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sprout Tiny Homes'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.
STHI vs DREM, DHI, LEN: Interest Coverage Comparison
For the Residential Construction subindustry, Sprout Tiny Homes'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.
Sprout Tiny Homes Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sprout Tiny Homes's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sprout Tiny Homes'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:
Sprout Tiny Homes 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?
Sprout Tiny Homes (STHI) has a Interest Coverage of 0 (At Loss) as of Mar. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sprout Tiny Homes and its competitors.
Is Sprout Tiny Homes' Interest Coverage too high?
Sprout Tiny Homes' current Interest Coverage is 0 (At Loss). Overall, Sprout Tiny Homes has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sprout Tiny Homes' Interest Coverage compare to DREM and DHI?
Sprout Tiny Homes' Interest Coverage of 0 (At Loss) can be compared against companies in the Homebuilding & Construction industry. The industry median Interest Coverage is 8.31. 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 Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.31, based on 78 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 Sprout Tiny Homes and its competitors. For the Homebuilding & Construction industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprout Tiny Homes'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 Sprout Tiny Homes stock overvalued right now?
Sprout Tiny Homes (STHI) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Sprout Tiny Homes' 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 Sprout Tiny Homes (STHI), the current Interest Coverage is 0 (At Loss) as of Mar. 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.
Sprout Tiny Homes Inc is engaged in the design, development, and manufacture of zero energy ready tiny homes with chemical-free interiors. The company focuses on producing modular and mobile housing solutions, including workforce housing, affordable housing, and custom-built homes, along with related design and consulting services.
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