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Eolus AB (STU:7EVB) Interest Coverage : 4.71 (As of Mar. 2025)


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What is Eolus 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. Eolus AB's Operating Income for the three months ended in Mar. 2025 was €15.1 Mil. Eolus AB's Interest Expense for the three months ended in Mar. 2025 was €-3.2 Mil. Eolus AB's interest coverage for the quarter that ended in Mar. 2025 was 4.71. The higher the ratio, the stronger the company's financial strength is.

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

STU:7EVB' s Interest Coverage Range Over the Past 10 Years
Min: 2.98   Med: 6.33   Max: 30.11
Current: 8.33


STU:7EVB's Interest Coverage is ranked worse than
100% of 324 companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.975 vs STU:7EVB: 8.33

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


Eolus AB Interest Coverage Historical Data

The historical data trend for Eolus 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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Eolus AB Interest Coverage Chart

Eolus AB Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.98 - 6.13 18.87 5.62

Eolus AB Quarterly Data
May20 Aug20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only N/A - N/A 109.17 4.71

Competitive Comparison of Eolus AB's Interest Coverage

For the Utilities - Renewable subindustry, Eolus 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.


Eolus AB's Interest Coverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Eolus AB's Interest Coverage distribution charts can be found below:

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


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Eolus 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.

Eolus AB's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Eolus AB's Interest Expense was €-4.6 Mil. Its Operating Income was €25.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €70.2 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*25.907/-4.608
=5.62

Eolus AB's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Eolus AB's Interest Expense was €-3.2 Mil. Its Operating Income was €15.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €51.9 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*15.062/-3.195
=4.71

* 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.

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


Eolus AB  (STU:7EVB) 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 .


Eolus AB Interest Coverage Related Terms

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


Eolus AB Business Description

Traded in Other Exchanges
Address
Tredje Avenyen 3, Box 95, Hassleholm, SWE, 281 21
Eolus Vind AB is a wind power contractor in Sweden. The company is engaged in the development and construction of wind turbines for divestment or proprietary management. It is also engaged in project development activity, which includes pre-study, project development, establishment, and sale of wind power facilities. Its project portfolio includes onshore wind, offshore wind, solar power, storage, and sea-based wind. The majority of its revenue comes from the project planning segment.

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