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Controladora Vuela Compania de AviacionB de CV (Controladora Vuela Compania de AviacionB de CV) Interest Coverage : 1.68 (As of Mar. 2024)


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What is Controladora Vuela Compania de AviacionB de CV 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. Controladora Vuela Compania de AviacionB de CV's Operating Income for the three months ended in Mar. 2024 was $104 Mil. Controladora Vuela Compania de AviacionB de CV's Interest Expense for the three months ended in Mar. 2024 was $-62 Mil. Controladora Vuela Compania de AviacionB de CV's interest coverage for the quarter that ended in Mar. 2024 was 1.68. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Controladora Vuela Compania de Aviacion SAB de CV interest coverage is 1.56, which is low.

The historical rank and industry rank for Controladora Vuela Compania de AviacionB de CV's Interest Coverage or its related term are showing as below:

VLRS' s Interest Coverage Range Over the Past 10 Years
Min: 0.13   Med: 2.32   Max: 127.48
Current: 1.56


VLRS's Interest Coverage is ranked worse than
85.68% of 817 companies
in the Transportation industry
Industry Median: 5.44 vs VLRS: 1.56

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


Controladora Vuela Compania de AviacionB de CV Interest Coverage Historical Data

The historical data trend for Controladora Vuela Compania de AviacionB de CV'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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Controladora Vuela Compania de AviacionB de CV Interest Coverage Chart

Controladora Vuela Compania de AviacionB de CV 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 1.81 - 2.82 0.13 0.97

Controladora Vuela Compania de AviacionB de CV Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 - 0.89 0.65 3.62 1.68

Competitive Comparison of Controladora Vuela Compania de AviacionB de CV's Interest Coverage

For the Airlines subindustry, Controladora Vuela Compania de AviacionB de CV'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.


Controladora Vuela Compania de AviacionB de CV's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Controladora Vuela Compania de AviacionB de CV's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Controladora Vuela Compania de AviacionB de CV's Interest Coverage falls into.



Controladora Vuela Compania de AviacionB de CV 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.

Controladora Vuela Compania de AviacionB de CV'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, Controladora Vuela Compania de AviacionB de CV's Interest Expense was $-217 Mil. Its Operating Income was $211 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,952 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*210.895/-217.264
=0.97

Controladora Vuela Compania de AviacionB de CV's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Controladora Vuela Compania de AviacionB de CV's Interest Expense was $-62 Mil. Its Operating Income was $104 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,028 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*104/-62
=1.68

* 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.


Controladora Vuela Compania de AviacionB de CV  (NYSE:VLRS) 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 .


Controladora Vuela Compania de AviacionB de CV Interest Coverage Related Terms

Thank you for viewing the detailed overview of Controladora Vuela Compania de AviacionB de CV's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Controladora Vuela Compania de AviacionB de CV (Controladora Vuela Compania de AviacionB de CV) Business Description

Traded in Other Exchanges
Address
Av. Antonio Dovali Jaime Number 70, 13th Floor, Tower B, Colonia Zedec Santa Fe, Mexico, DF, MEX, 01210
Controladora Vuela Compania de Aviacion SAB de CV is a low-cost airline flying to Mexico, the United States, Central and South America. It currently operates up to 500 average daily flight segments on routes that connect 44 cities in Mexico as well as 22 cities in the United States, four in Central America and two in South America. It uses promotional fares to stimulate demand and the base fares are priced to compete with long-distance bus fares in Mexico. Revenues from the air transportation of passengers are recognized earlier when the service is provided or when the non-refundable ticket expires at the date of the scheduled travel. Non-passenger revenues include revenues generated from other non-passenger revenues and cargo services.