Sever Holding AD (XBUL:SEVH) Interest Coverage : 1.43 (As of Dec. 2023)

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What is Sever Holding AD 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. Sever Holding AD's Operating Income for the six months ended in Dec. 2023 was лв2.12 Mil. Sever Holding AD's Interest Expense for the six months ended in Dec. 2023 was лв-1.48 Mil. Sever Holding AD's interest coverage for the quarter that ended in Dec. 2023 was 1.43. 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. Sever Holding AD interest coverage is 1.27, which is low.

The historical rank and industry rank for Sever Holding AD's Interest Coverage or its related term are showing as below:

XBUL:SEVH' s Interest Coverage Range Over the Past 10 Years
Min: 1.27 Med: 1.34 Max: 1.6
Current: 1.27

XBUL:SEVH's Interest Coverage is ranked worse than
89.18% of 453 companies
in the Asset Management industry
Industry Median: 47.71 vs XBUL:SEVH: 1.27

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

Sever Holding AD Interest Coverage Historical Data

The historical data trend for Sever Holding AD'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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Sever Holding AD Interest Coverage Chart

Sever Holding AD Annual Data

Trend

Dec21

Dec22

Dec23

Interest Coverage

1.60

1.34

1.27

Sever Holding AD Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	N/A	1.20	1.50	0.87	1.43

Competitive Comparison of Sever Holding AD's Interest Coverage

For the Asset Management subindustry, Sever Holding AD'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.

Sever Holding AD's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Sever Holding AD's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sever Holding AD's Interest Coverage falls into.

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Sever Holding AD 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.

Sever Holding AD'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, Sever Holding AD's Interest Expense was лв-2.10 Mil. Its Operating Income was лв2.66 Mil. And its Long-Term Debt & Capital Lease Obligation was лв59.00 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2.657	/	-2.098
	=	1.27

Sever Holding AD's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Sever Holding AD's Interest Expense was лв-1.48 Mil. Its Operating Income was лв2.12 Mil. And its Long-Term Debt & Capital Lease Obligation was лв59.00 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2.121	/	-1.484
	=	1.43

The higher the ratio, the stronger the company's Financial Strength is.

Sever Holding AD (XBUL:SEVH) 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 .

Sever Holding AD Interest Coverage Related Terms

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

Sever Holding AD Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Sever Holding AD (XBUL:SEVH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Tsar Asen Street I, No 5, 3rd Floor, Varna, BGR, 9000

Website

http://www.sever-holding.com

Sever Holding AD main activity of the holding is related to the acquisition, management, evaluation and sale of shares and/or shareholdings in Bulgarian and foreign companies.

Sever Holding AD Headlines

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