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Dirtt Environmental Solutions (TSX:DRT) Interest Coverage : 5.11 (As of Dec. 2024)


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What is Dirtt Environmental Solutions 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. Dirtt Environmental Solutions's Operating Income for the three months ended in Dec. 2024 was C$3.4 Mil. Dirtt Environmental Solutions's Interest Expense for the three months ended in Dec. 2024 was C$-0.7 Mil. Dirtt Environmental Solutions's interest coverage for the quarter that ended in Dec. 2024 was 5.11. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dirtt Environmental Solutions's Interest Coverage or its related term are showing as below:

TSX:DRT' s Interest Coverage Range Over the Past 10 Years
Min: 1.47   Med: 37.42   Max: 43.24
Current: 1.49


TSX:DRT's Interest Coverage is ranked worse than
85.94% of 1316 companies
in the Construction industry
Industry Median: 7.185 vs TSX:DRT: 1.49

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


Dirtt Environmental Solutions Interest Coverage Historical Data

The historical data trend for Dirtt Environmental Solutions'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.

* Premium members only.

Dirtt Environmental Solutions Interest Coverage Chart

Dirtt Environmental Solutions Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 1.47

Dirtt Environmental Solutions Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 2.21 0.44 1.29 1.17 5.11

Competitive Comparison of Dirtt Environmental Solutions's Interest Coverage

For the Engineering & Construction subindustry, Dirtt Environmental Solutions'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.


Dirtt Environmental Solutions's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Dirtt Environmental Solutions's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dirtt Environmental Solutions's Interest Coverage falls into.


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Dirtt Environmental Solutions 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.

Dirtt Environmental Solutions'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, Dirtt Environmental Solutions's Interest Expense was C$-5.7 Mil. Its Operating Income was C$8.4 Mil. And its Long-Term Debt & Capital Lease Obligation was C$65.6 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*8.362/-5.692
=1.47

Dirtt Environmental Solutions's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Dirtt Environmental Solutions's Interest Expense was C$-0.7 Mil. Its Operating Income was C$3.4 Mil. And its Long-Term Debt & Capital Lease Obligation was C$65.6 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*3.428/-0.671
=5.11

* 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.


Dirtt Environmental Solutions  (TSX:DRT) 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 .


Dirtt Environmental Solutions Interest Coverage Related Terms

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


Dirtt Environmental Solutions Business Description

Traded in Other Exchanges
Address
7303-30th Street S.E, Calgary, AB, CAN, T2C 1N6
Dirtt Environmental Solutions Ltd is a manufacturer of customized interiors. The company combines its (3D) design, configuration, and manufacturing software (ICE or ICE Software) with in-house manufacturing of its prefabricated interior construction solutions and a distribution partner (DP) network. It offers services to various sectors which include healthcare, education, commercial, Government and other sectors. DIRTT operates its activity through the U.S. and Canada of which, the United States generates the majority of revenue.
Executives
Shaun Noll Director
Lp 22nw Fund 10% Security Holder
Scott Lawrence Robinson Director
Benjamin Nicholas Urban Senior Officer
Kenneth Dean Sanders Director
Michael Terrell Ford Director
Diana Russell Rhoten Director
Steven Elliott Parry Director
Denise Eileen Karkkainen Director
Shauna Ryan King Director
Todd Lillibridge Director
Aron English Director, Director or Senior Officer of 10% Security Holder
Charles R. Kraus Senior Officer
Mak Capital One Llc 10% Security Holder
Wayne Boulais Director

Dirtt Environmental Solutions Headlines

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