Richelieu Hardware (TSX:RCH) Interest Coverage : 6.39 (As of Feb. 2025)

Richelieu Hardware Interest Coverage Chart

Richelieu Hardware Annual Data
	Trend	Nov15	Nov16	Nov17	Nov18	Nov19	Nov20	Nov21	Nov22	Nov23	Nov24
Interest Coverage		Get a 7-Day Free Trial					44.91	73.13	33.43	12.76	11.36

Richelieu Hardware Quarterly Data
	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25
Interest Coverage	Get a 7-Day Free Trial															9.43	11.83	11.81	12.05	6.39

Competitive Comparison of Richelieu Hardware's Interest Coverage

For the Furnishings, Fixtures & Appliances subindustry, Richelieu Hardware'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.

Richelieu Hardware's Interest Coverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Richelieu Hardware's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Richelieu Hardware's Interest Coverage falls into.

Richelieu Hardware 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Richelieu Hardware's Interest Coverage for the fiscal year that ended in Nov. 2024 is calculated as

Here, for the fiscal year that ended in Nov. 2024, Richelieu Hardware's Interest Expense was C$-12 Mil. Its Operating Income was C$132 Mil. And its Long-Term Debt & Capital Lease Obligation was C$166 Mil.

Richelieu Hardware's Interest Coverage for the quarter that ended in Feb. 2025 is calculated as

Here, for the three months ended in Feb. 2025, Richelieu Hardware's Interest Expense was C$-4 Mil. Its Operating Income was C$24 Mil. And its Long-Term Debt & Capital Lease Obligation was C$191 Mil.

* 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.

Richelieu Hardware  (TSX:RCH) 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 .

Richelieu Hardware Interest Coverage Related Terms

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Richelieu Hardware Business Description