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Quality Beverages (XMAU:QBL.I0000) Interest Coverage : 2.34 (As of Jun. 2024)


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What is Quality Beverages 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. Quality Beverages's Operating Income for the three months ended in Jun. 2024 was MUR31 Mil. Quality Beverages's Interest Expense for the three months ended in Jun. 2024 was MUR-13 Mil. Quality Beverages's interest coverage for the quarter that ended in Jun. 2024 was 2.34. 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. Quality Beverages Ltd interest coverage is 2.83, which is low.

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

XMAU:QBL.I0000' s Interest Coverage Range Over the Past 10 Years
Min: 0.77   Med: 2.3   Max: 3.38
Current: 2.83


XMAU:QBL.I0000's Interest Coverage is ranked worse than
85.71% of 84 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 19.475 vs XMAU:QBL.I0000: 2.83

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


Quality Beverages Interest Coverage Historical Data

The historical data trend for Quality Beverages'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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Quality Beverages Interest Coverage Chart

Quality Beverages Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial 2.87 - 0.77 3.38 2.24

Quality Beverages Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 1.16 0.16 8.26 1.29 2.34

Competitive Comparison of Quality Beverages's Interest Coverage

For the Beverages - Non-Alcoholic subindustry, Quality Beverages'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.


Quality Beverages's Interest Coverage Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Quality Beverages's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Quality Beverages's Interest Coverage falls into.



Quality Beverages 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.

Quality Beverages'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, Quality Beverages's Interest Expense was MUR-39 Mil. Its Operating Income was MUR88 Mil. And its Long-Term Debt & Capital Lease Obligation was MUR345 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*87.687/-39.098
=2.24

Quality Beverages's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Quality Beverages's Interest Expense was MUR-13 Mil. Its Operating Income was MUR31 Mil. And its Long-Term Debt & Capital Lease Obligation was MUR0 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*30.72/-13.136
=2.34

* 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.


Quality Beverages  (XMAU:QBL.I0000) 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 .


Quality Beverages Interest Coverage Related Terms

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


Quality Beverages Business Description

Traded in Other Exchanges
N/A
Address
Royal Road, Belle Rose, MUS, 72204
Quality Beverages Ltd is engaged in the bottling and distribution of beverages including soft drinks and water. It produces Pepsi Cola Products, Evervess, Mountain Dew, Fiesta, and Sparkling cote fruits. the company operates in two segments Manufacturing and trading and advertising. It derives maximum revenue from Manufacturing and trading segment.

Quality Beverages Headlines

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