CAP (XSGO:CAP) Interest Coverage : 0.25 (As of Mar. 2025)

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What is CAP 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. CAP's Operating Income for the three months ended in Mar. 2025 was CLP6,781 Mil. CAP's Interest Expense for the three months ended in Mar. 2025 was CLP-26,906 Mil. CAP's interest coverage for the quarter that ended in Mar. 2025 was 0.25. 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. CAP SA interest coverage is 1.32, which is low.

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

XSGO:CAP' s Interest Coverage Range Over the Past 10 Years
Min: 1.14 Med: 6.5 Max: 30.8
Current: 1.32

XSGO:CAP's Interest Coverage is ranked worse than
83.67% of 447 companies
in the Steel industry
Industry Median: 5.26 vs XSGO:CAP: 1.32

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

CAP Interest Coverage Historical Data

The historical data trend for CAP'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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CAP Interest Coverage Chart

CAP Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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11.01

30.80

9.37

7.97

1.14

CAP Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial															0.21	3.34	0.87	0.43	0.25

Competitive Comparison of CAP's Interest Coverage

For the Steel subindustry, CAP'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.

CAP's Interest Coverage Distribution in the Steel Industry

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

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

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CAP 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.

CAP's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, CAP's Interest Expense was CLP-107,637 Mil. Its Operating Income was CLP123,152 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP1,205,426 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	123152.309	/	-107637.166
	=	1.14

CAP's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, CAP's Interest Expense was CLP-26,906 Mil. Its Operating Income was CLP6,781 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP1,265,881 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	6780.819	/	-26906.044
	=	0.25

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

CAP (XSGO:CAP) 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 .

CAP Interest Coverage Related Terms

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

CAP Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » CAP SA (XSGO:CAP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Gertrudis Echenique 220, Las Condes, Santiago, CHL

Website

http://www.cap.cl

CAP SA is a Chile-based holding company. The company, through its subsidiaries, is engaged in mining, steel production, steel processing, and infrastructure business. The company manages three business areas: iron ore (CAP Mining), steel production (CAP Steel) and CAP Steel Solutions. The company's main customers are located in Bahrain, Chile, China, Japan, Korea, Malaysia, and the USA. The firm's CAP Mining business division is engaged in the production of iron ore and pellets. CAP Steel operates through its subsidiary Compania Siderurgica Huachipato S.A, which sells steel products to distributors and construction companies, and CAP Steel Solutions main purpose is the manufacture, distribution, import and export of all kinds of steel and metal products.