GFL Environmental (TSX:GFL) Interest Coverage : 1.10 (As of Sep. 2024)

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What is GFL Environmental 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. GFL Environmental's Operating Income for the three months ended in Sep. 2024 was C$163 Mil. GFL Environmental's Interest Expense for the three months ended in Sep. 2024 was C$-148 Mil. GFL Environmental's interest coverage for the quarter that ended in Sep. 2024 was 1.10. The higher the ratio, the stronger the company's financial strength is.

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

TSX:GFL' s Interest Coverage Range Over the Past 10 Years
Min: 0.09 Med: 0.15 Max: 0.58
Current: 0.58

TSX:GFL's Interest Coverage is ranked worse than
95.32% of 171 companies
in the Waste Management industry
Industry Median: 5.06 vs TSX:GFL: 0.58

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

GFL Environmental Interest Coverage Historical Data

The historical data trend for GFL Environmental'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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GFL Environmental Interest Coverage Chart

GFL Environmental Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.09

0.53

GFL Environmental Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															1.03	0.24	0.14	0.78	1.10

Competitive Comparison of GFL Environmental's Interest Coverage

For the Waste Management subindustry, GFL Environmental'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.

GFL Environmental's Interest Coverage Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, GFL Environmental's Interest Coverage distribution charts can be found below:

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

GFL Environmental 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.

GFL Environmental's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, GFL Environmental's Interest Expense was C$-533 Mil. Its Operating Income was C$284 Mil. And its Long-Term Debt & Capital Lease Obligation was C$9,214 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	284.3	/	-532.7
	=	0.53

GFL Environmental's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, GFL Environmental's Interest Expense was C$-148 Mil. Its Operating Income was C$163 Mil. And its Long-Term Debt & Capital Lease Obligation was C$8,917 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	162.9	/	-147.5
	=	1.10

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

GFL Environmental (TSX:GFL) 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 .

GFL Environmental Interest Coverage Related Terms

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GFL Environmental Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » GFL Environmental Inc (TSX:GFL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

GFL:USA 36E:Germany

Address

100 New Park Place, Suite 500, Vaughan, ON, CAN, L4K 0H9

Website

https://www.gflenv.com

GFL Environmental Inc is an environmental services company. Its offerings include non-hazardous solid waste management, infrastructure, soil remediation, and liquid waste management services. Its solid waste management business line, which generates the majority of the revenue, consists of the collection, transportation, transfer, recycling, and disposal of non-hazardous solid waste. Its Environmental Services business line includes liquid waste and soil remediation. GFL's geographical segments are Canada and the United States. The company derives the majority of its revenue from the United States.