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. The Alkaline Water Co's
Operating Income
for the
three
months ended in Jun. 2023 was $-2.42 Mil. The Alkaline Water Co's Interest Expense for the
three
months ended in Jun. 2023 was $-0.42 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Alkaline Water Co's Interest Coverage or its related term are showing as below:
WTER's Interest Coverage is not ranked *
in the Beverages - Non-Alcoholic industry.
Industry Median: 12.32 * Ranked among companies with meaningful Interest Coverage only.
The Alkaline Water Co (OTCPK:WTER) 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 .
The Alkaline Water Co Interest Coverage Related Terms
The Alkaline Water Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for The Alkaline Water Co'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.
WTER vs PSCBF, ASII, REED: Interest Coverage Comparison
For the Beverages - Non-Alcoholic subindustry, The Alkaline Water Co'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.
The Alkaline Water Co Interest Coverage vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Alkaline Water Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Alkaline Water Co's Interest Coverage falls into.
The Alkaline Water Co 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:
The Alkaline Water Co did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
The Alkaline Water Co (WTER) has a Interest Coverage of 0 (At Loss) as of Jun. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Alkaline Water Co and its competitors.
Is The Alkaline Water Co's Interest Coverage too high?
The Alkaline Water Co's current Interest Coverage is 0 (At Loss). Overall, The Alkaline Water Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does The Alkaline Water Co's Interest Coverage compare to PSCBF and ASII?
The Alkaline Water Co's Interest Coverage of 0 (At Loss) can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median Interest Coverage is 12.32. 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 Beverages - Non-Alcoholic company?
The median Interest Coverage among Beverages - Non-Alcoholic companies is 12.32, based on 90 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. 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 The Alkaline Water Co and its competitors. For the Beverages - Non-Alcoholic industry, the median Interest Coverage is 12.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Alkaline Water Co's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Alkaline Water Co stock overvalued right now?
The Alkaline Water Co (WTER) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). The Alkaline Water Co's 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 The Alkaline Water Co (WTER), the current Interest Coverage is 0 (At Loss) as of Jun. 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.
The Alkaline Water Co Inc is engaged in the business of distributing and marketing bottled alkaline water for retail consumers of different sizes. The firm sells its product in 500ml, 700ml, 1-liter, 1.5-liter 3-liter, and 1-gallon sizes. Its only operating geographical segment being the United States of America. The company sells its product to convenience stores, natural food products stores, large ethnic markets, and national retailers.
12GF Score
Get the complete analysis for WTER
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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