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WSC (WillScot Holdings) Interest Coverage : 2.64 (As of Sep. 2024)


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What is WillScot Holdings 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. WillScot Holdings's Operating Income for the three months ended in Sep. 2024 was $147 Mil. WillScot Holdings's Interest Expense for the three months ended in Sep. 2024 was $-56 Mil. WillScot Holdings's interest coverage for the quarter that ended in Sep. 2024 was 2.64. 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. WillScot Holdings Corp interest coverage is 2.59, which is low.

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

WSC' s Interest Coverage Range Over the Past 10 Years
Min: 0.47   Med: 2.96   Max: No Debt
Current: 2.59


WSC's Interest Coverage is ranked worse than
80.71% of 788 companies
in the Business Services industry
Industry Median: 13.2 vs WSC: 2.59

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


WillScot Holdings Interest Coverage Historical Data

The historical data trend for WillScot Holdings'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.

WillScot Holdings Interest Coverage Chart

WillScot Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 1.08 1.98 2.59 3.50 3.32

WillScot Holdings 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 3.31 2.99 2.31 2.40 2.64

Competitive Comparison of WillScot Holdings's Interest Coverage

For the Rental & Leasing Services subindustry, WillScot Holdings'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.


WillScot Holdings's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, WillScot Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where WillScot Holdings's Interest Coverage falls into.



WillScot Holdings 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.

WillScot Holdings'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, WillScot Holdings's Interest Expense was $-205 Mil. Its Operating Income was $680 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,726 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*680.213/-205.04
=3.32

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

Here, for the three months ended in Sep. 2024, WillScot Holdings's Interest Expense was $-56 Mil. Its Operating Income was $147 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,800 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*147.131/-55.823
=2.64

* 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.


WillScot Holdings  (NAS:WSC) 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 .


WillScot Holdings Interest Coverage Related Terms

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


WillScot Holdings Business Description

Traded in Other Exchanges
Address
4646 East Van Buren Street, Suite 400, Phoenix, AZ, USA, 85008
WillScot Holdings Corp designs, delivers, and services onsite, on-demand space solutions for clients. The company offers turnkey solutions in construction, education, manufacturing, retail, healthcare, and entertainment sectors. The products of the company includes modular office complexes, mobile offices, portable storage containers, and others.
Executives
Gerard E Holthaus director 3129 BLENDON ROAD, OWINGS MILLS MD 21117
Sally J Shanks officer: Chief Accounting Officer 901 S. BOND STREET, SUITE 600, BALTIMORE MD 21231
Jeffrey Sagansky director, 10 percent owner, officer: President & CEO 1450 2ND STREET, SUITE 247, SANTA MONICA CA 90401
Timothy D Boswell officer: Chief Financial Officer 901 S. BOND STREET, 6TH FLOOR, BALTIMORE MD 21231
Erik Olsson director C/O RSC HOLDINGS INC., 6929 E. GREENWAY PARKWAY, SCOTTSDALE AZ 85254
Bradley Lee Soultz director, officer: Chief Executive Officer 901 S. BOND STREET, SUITE 600, BALTIMORE MD 21231
Hezron T. Lopez officer: V.P.,Gen Counsel, Corp. Sec. 855 EAST MAIN AVE, ZEELAND MI 49464
Natalia Johnson director C/O PUBLIC STORAGE, 701 WESTERN AVENUE, GLENDALE CA 91201
Felicia Gorcyca officer: Chief Human Resources Officer 4800 N. SCOTTSDALE ROAD, SUITE 6000, SCOTTSDALE AZ 85251
Erika T Davis director
Graeme Parkes officer: Chief Information Officer 4646 E. VAN BUREN STREET, SUITE 400, PHOENIX AZ 85008
Rebecca L Owen director 1750 H STREET, SUITE 500, COLUMBIA EQUITY TRUST, INC., WASHINGTON DC 20006
Christopher J Miner officer: SVP, GC & Secretary 7420 SOUTH KYRENE ROAD SUITE 101, TEMPE AZ 85253
Michael W Upchurch director KANSAS CITY SOUTHERN, PO BOX 219335, KANSAS CITY MO 64121
Sapphire Holding S.a R.l. 10 percent owner C/O TDR CAPITAL LLP, 20 BENTINCK STREET, LONDON X0 W1U 2EU