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. Severstal PAO's
Operating Income
for the
six
months ended in Dec. 2023 was €1,259 Mil. Severstal PAO's Interest Expense for the
six
months ended in Dec. 2023 was €-123 Mil.
Severstal PAO's interest coverage for the quarter that ended in Dec. 2023 was 10.23.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Severstal PAO's Interest Coverage or its related term are showing as below:
XTER:RTS2's Interest Coverage is not ranked *
in the Steel industry.
Industry Median: 4.445 * Ranked among companies with meaningful Interest Coverage only.
Severstal PAO (XTER:RTS2) 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 .
Severstal PAO Interest Coverage Related Terms
Severstal PAO Interest Coverage Historical Data
* Premium members only.
The historical data trend for Severstal PAO'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.
XTER:RTS2 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Severstal PAO'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.
Severstal PAO Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Severstal PAO's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Severstal PAO's Interest Coverage falls into.
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:
* 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.
Severstal PAO (XTER:RTS2) has a Interest Coverage of 10.23 as of Dec. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Severstal PAO and its competitors.
Is Severstal PAO's Interest Coverage too high?
Severstal PAO's current Interest Coverage is 10.23. The Steel industry median Interest Coverage is 4.45. Severstal PAO's value of 10.23 is 130.1% above this industry median. Overall, Severstal PAO has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Severstal PAO's Interest Coverage compare to NUE and STLD?
Severstal PAO's Interest Coverage of 10.23 can be compared against companies in the Steel industry. The industry median Interest Coverage is 4.45. Severstal PAO's value of 10.23 is 130.1% 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 a Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 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. Severstal PAO's current Interest Coverage of 10.23 is 130.1% 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 Severstal PAO and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severstal PAO's current Interest Coverage is 10.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severstal PAO stock overvalued right now?
Severstal PAO (XTER:RTS2) has a current Interest Coverage of 10.23. The current Interest Coverage is 10.23 and 130.1% above the Steel industry median of 4.45. Severstal PAO's overall GF Score™ is 17/100. 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 Severstal PAO (XTER:RTS2), the current Interest Coverage is 10.23 as of Dec. 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.
Severstal PAO is a vertically integrated steel and mining company in Russia. The company has two operating divisions: Severstal Resources and Severstal Russian Steel. Its core asset is the Cherepovets steel mill, which is located within easy access of the company's mining operations, the Baltic ports, and Russia's industrial heartland. The company produces iron ore pellets, iron ore concentrates, crushed stones, ferrite strontium powder, coking & steam coal, and coking coal concentrate. These materials are provided to six industry categories: construction and service processing, tube and pipe, oil and gas, machinery, autos, and others. Construction and service processing accounts for a majority of sales. Severstal generates most of its revenue in Russia.
17GF Score
Get the complete analysis for XTER:RTS2
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XTER:RTS2 has been successfully added to your 
