WEBC (Webco Industries) Interest Coverage: 6.39 (As of Jul. 2023)


WEBC Webco Industries Inc WEBC
12 GF Score
Price $310.00
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What is Webco Industries Interest Coverage?

Webco Industries WEBC 12 Interest Coverage is 6.39 as of Jul. 2023. GuruFocus rates WEBC with a GF Score™ of 12/100.

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. Webco Industries's Operating Income for the six months ended in Jul. 2023 was $38.9 Mil. Webco Industries's Interest Expense for the six months ended in Jul. 2023 was $-6.1 Mil. Webco Industries's interest coverage for the quarter that ended in Jul. 2023 was 6.39. The higher the ratio, the stronger the company's financial strength is.

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


WEBC's Interest Coverage is not ranked *
in the Steel industry.
Industry Median: 4.445
* Ranked among companies with meaningful Interest Coverage only.

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

Webco Industries  (OTCPK:WEBC) 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 .

Webco Industries Interest Coverage Related Terms

Webco Industries Interest Coverage Historical Data

* Premium members only.

The historical data trend for Webco Industries'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.

Webco Industries Interest Coverage Chart

Webco Industries Annual Data
Trend Jul05 Jul06 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.50 0.00 3.57 7.73 6.39

Webco Industries Semi-Annual Data
Jul95 Jul96 Jul97 Jul98 Jul99 Jul00 Jul01 Jul02 Jul03 Jul04 Jul05 Jul06 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul23
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 1.50 0.00 3.57 7.73 6.39

WEBC vs ACNT, FRD, LUD: Interest Coverage Comparison

For the Steel subindustry, Webco Industries'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.

Webco Industries Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, Webco Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Webco Industries's Interest Coverage falls into.


WEBC
12GF Score
Webco Industries Inc WEBC
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Webco Industries 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.

Webco Industries's Interest Coverage for the fiscal year that ended in Jul. 2023 is calculated as

Here, for the fiscal year that ended in Jul. 2023, Webco Industries's Interest Expense was $-6.1 Mil. Its Operating Income was $38.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $39.1 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2023 )/Interest Expense (A: Jul. 2023 )
=-1*38.907/-6.089
=6.39

Webco Industries's Interest Coverage for the quarter that ended in Jul. 2023 is calculated as

Here, for the six months ended in Jul. 2023, Webco Industries's Interest Expense was $-6.1 Mil. Its Operating Income was $38.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $39.1 Mil.

Interest Coverage=-1* Operating Income (Q: Jul. 2023 )/Interest Expense (Q: Jul. 2023 )
=-1*38.907/-6.089
=6.39

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 6.39 mean?
Webco Industries (WEBC) has a Interest Coverage of 6.39 as of Jul. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Webco Industries and its competitors.
Is Webco Industries' Interest Coverage too high?
Webco Industries' current Interest Coverage is 6.39. The Steel industry median Interest Coverage is 4.45. Webco Industries' value of 6.39 is 43.8% above this industry median. Overall, Webco Industries has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Webco Industries' Interest Coverage compare to ACNT and FRD?
Webco Industries' Interest Coverage of 6.39 can be compared against companies in the Steel industry. The industry median Interest Coverage is 4.45. Webco Industries' value of 6.39 is 43.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Webco Industries's current Interest Coverage of 6.39 is 43.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Webco Industries and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Webco Industries's current Interest Coverage is 6.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Webco Industries stock overvalued right now?
Webco Industries (WEBC) has a current Interest Coverage of 6.39. The current Interest Coverage is 6.39 and 43.8% above the Steel industry median of 4.45. Webco Industries' overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Webco Industries (WEBC), the current Interest Coverage is 6.39 as of Jul. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Webco Industries Business Description

Address 9101 West 21st Street, P.O. Box 100, Sand Springs, OK, USA, 74063
Webco Industries Inc is a specialty manufacturer and seller of high-quality carbon and stainless steel tubing products that are designed to industry and customer specifications. The company's products includes Welded tubing; Cold drawn- Welded and Cold drawn- Seamless. Its value-added services include bending, custom mill length, end formed/swaged, finning, heat treating, packaging, precision cutting, product availability and responsiveness.
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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