Empresa de Serviciosntitarios de Los Lagos (XSGO:ESSAL-B) Interest Coverage: 6.35 (As of Mar. 2021)


What is Empresa de Serviciosntitarios de Los Lagos Interest Coverage?

Empresa de Serviciosntitarios de Los Lagos XSGO:ESSAL-B Interest Coverage is 6.35 as of Mar. 2021.

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. Empresa de Serviciosntitarios de Los Lagos's Operating Income for the three months ended in Mar. 2021 was CLP5,673.25 Mil. Empresa de Serviciosntitarios de Los Lagos's Interest Expense for the three months ended in Mar. 2021 was CLP-893.93 Mil. Empresa de Serviciosntitarios de Los Lagos's interest coverage for the quarter that ended in Mar. 2021 was 6.35. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Empresa de Serviciosntitarios de Los Lagos's Interest Coverage or its related term are showing as below:


XSGO:ESSAL-B's Interest Coverage is not ranked *
in the Utilities - Regulated industry.
Industry Median: 3.78
* Ranked among companies with meaningful Interest Coverage only.

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

Empresa de Serviciosntitarios de Los Lagos  (XSGO:ESSAL-B) 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 .

Empresa de Serviciosntitarios de Los Lagos Interest Coverage Related Terms

Empresa de Serviciosntitarios de Los Lagos Interest Coverage Historical Data

* Premium members only.

The historical data trend for Empresa de Serviciosntitarios de Los Lagos'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.

Empresa de Serviciosntitarios de Los Lagos Interest Coverage Chart

Empresa de Serviciosntitarios de Los Lagos Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.50 5.54 5.34 4.32 3.16

Empresa de Serviciosntitarios de Los Lagos Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
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 3.82 6.79 1.39 1.20 6.35

Empresa de Serviciosntitarios de Los Lagos Interest Coverage Competitor Comparison

For the Utilities - Regulated Water subindustry, Empresa de Serviciosntitarios de Los Lagos'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.

Empresa de Serviciosntitarios de Los Lagos Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Empresa de Serviciosntitarios de Los Lagos's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Empresa de Serviciosntitarios de Los Lagos's Interest Coverage falls into.


Empresa de Serviciosntitarios de Los Lagos 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.

Empresa de Serviciosntitarios de Los Lagos's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Empresa de Serviciosntitarios de Los Lagos's Interest Expense was CLP-3,659.29 Mil. Its Operating Income was CLP11,545.78 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP98,722.77 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*11545.782/-3659.288
=3.16

Empresa de Serviciosntitarios de Los Lagos's Interest Coverage for the quarter that ended in Mar. 2021 is calculated as

Here, for the three months ended in Mar. 2021, Empresa de Serviciosntitarios de Los Lagos's Interest Expense was CLP-893.93 Mil. Its Operating Income was CLP5,673.25 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP99,601.08 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2021 )/Interest Expense (Q: Mar. 2021 )
=-1*5673.254/-893.927
=6.35

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 6.35 mean?
Empresa de Serviciosntitarios de Los Lagos (XSGO:ESSAL-B) has a Interest Coverage of 6.35 as of Mar. 2021. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Empresa de Serviciosntitarios de Los Lagos and its competitors.
Is Empresa de Serviciosntitarios de Los Lagos' Interest Coverage too high?
Empresa de Serviciosntitarios de Los Lagos' current Interest Coverage is 6.35. The Utilities - Regulated industry median Interest Coverage is 3.78. Empresa de Serviciosntitarios de Los Lagos' value of 6.35 is 68% above this industry median.
How does Empresa de Serviciosntitarios de Los Lagos' Interest Coverage compare to competitors?
Empresa de Serviciosntitarios de Los Lagos' Interest Coverage of 6.35 can be compared against companies in the Utilities - Regulated industry. The industry median Interest Coverage is 3.78. Empresa de Serviciosntitarios de Los Lagos' value of 6.35 is 68% above this benchmark. 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 447 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. Empresa de Serviciosntitarios de Los Lagos's current Interest Coverage of 6.35 is 68% above the industry median. 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 Empresa de Serviciosntitarios de Los Lagos and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empresa de Serviciosntitarios de Los Lagos's current Interest Coverage is 6.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa de Serviciosntitarios de Los Lagos stock overvalued right now?
Empresa de Serviciosntitarios de Los Lagos (XSGO:ESSAL-B) has a current Interest Coverage of 6.35. The current Interest Coverage is 6.35 and 68% above the Utilities - Regulated industry median of 3.78. 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 Empresa de Serviciosntitarios de Los Lagos (XSGO:ESSAL-B), the current Interest Coverage is 6.35 as of Mar. 2021. 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.

Empresa de Serviciosntitarios de Los Lagos Business Description

Comparable Companies XSGO:ESSBIO-CXSGO:IAM
Address Covadonga No. 52, Puerto Montt, CHL
Empresa de Servicios Santitarios de Los Lagos SA provides drinking water and wastewater services. Its services include drinking water, sewerage, liquid industrial waste treatment, and feasibilities.