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NFI Group (TSX:NFI) Interest Coverage : 0.72 (As of Sep. 2024)


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What is NFI Group 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. NFI Group's Operating Income for the three months ended in Sep. 2024 was C$35 Mil. NFI Group's Interest Expense for the three months ended in Sep. 2024 was C$-49 Mil. NFI Group's interest coverage for the quarter that ended in Sep. 2024 was 0.72. The higher the ratio, the stronger the company's financial strength is.

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

TSX:NFI' s Interest Coverage Range Over the Past 10 Years
Min: 0.42   Med: 6.41   Max: 12.23
Current: 0.67


TSX:NFI's Interest Coverage is ranked worse than
95.24% of 1029 companies
in the Vehicles & Parts industry
Industry Median: 7.94 vs TSX:NFI: 0.67

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


NFI Group Interest Coverage Historical Data

The historical data trend for NFI Group'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.

NFI Group Interest Coverage Chart

NFI Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.35 - 0.42 - -

NFI Group 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 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 - 0.63 0.31 1.07 0.72

Competitive Comparison of NFI Group's Interest Coverage

For the Auto Manufacturers subindustry, NFI Group'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.


NFI Group's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, NFI Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where NFI Group's Interest Coverage falls into.



NFI Group 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.

NFI Group'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, NFI Group's Interest Expense was C$-182 Mil. Its Operating Income was C$-33 Mil. And its Long-Term Debt & Capital Lease Obligation was C$1,502 Mil.

NFI Group did not have earnings to cover the interest expense.

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

Here, for the three months ended in Sep. 2024, NFI Group's Interest Expense was C$-49 Mil. Its Operating Income was C$35 Mil. And its Long-Term Debt & Capital Lease Obligation was C$1,604 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*35.202/-48.732
=0.72

* 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.


NFI Group  (TSX:NFI) 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 .


NFI Group Interest Coverage Related Terms

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


NFI Group Business Description

Traded in Other Exchanges
Address
711 Kernaghan Avenue, Winnipeg, MB, CAN, R2C 3T4
NFI Group Inc is a bus manufacturer providing a comprehensive suite of mass transportation solutions under brands: New Flyer(heavy-duty transit buses), Alexander Dennis Limited (ADL) (single and double-deck buses), Plaxton (motor coaches), MCI (motor coaches), ARBOC Specialty Vehicles, LLC (ARBOC) (low-floor cutaway and medium-duty buses) and NFI Parts (aftermarket parts sales). The Company has two reportable segments which are the Company's strategic business units: Manufacturing Operations and Aftermarket Operations. It generates majority revenue from Manufacturing Operations. Geographically, the company generates majority of its revenue from North America and rest from United Kingdom, Europe and Asia Pacific region.
Executives
Jannet Walker-ford Director
Jason Michael Pellaers Senior Officer
Brian Keith Dewsnup Senior Officer
Phyllis Elaine Cochran Director
Richard Paul Davies Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Wendy Wai Ting Kei Director
Steven Allan Young Senior Officer
Michael Gavin Stewart Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Katherine S. Winter Director
Colin Robertson Director
Stephen King Senior Officer
Paul Soubry Senior Officer
Pipasu Harish Soni Senior Officer
Adam L. Gray Director
Brian Vincent Tobin Director

NFI Group Headlines

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