GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Standard Diversified Inc (AMEX:SDI) » Definitions » Interest Coverage

Standard Diversified (Standard Diversified) Interest Coverage : 1.14 (As of Mar. 2020)


View and export this data going back to 1993. Start your Free Trial

What is Standard Diversified 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. Standard Diversified's Operating Income for the three months ended in Mar. 2020 was $6.7 Mil. Standard Diversified's Interest Expense for the three months ended in Mar. 2020 was $-5.9 Mil. Standard Diversified's interest coverage for the quarter that ended in Mar. 2020 was 1.14. The higher the ratio, the stronger the company's financial strength is.

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


SDI's Interest Coverage is not ranked *
in the Tobacco Products industry.
Industry Median: 11.55
* 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.


Standard Diversified Interest Coverage Historical Data

The historical data trend for Standard Diversified'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.

* Premium members only.

Standard Diversified Interest Coverage Chart

Standard Diversified Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.30 1.64 2.79 2.33 0.76

Standard Diversified Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
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 2.19 3.41 2.48 - 1.14

Competitive Comparison of Standard Diversified's Interest Coverage

For the Tobacco subindustry, Standard Diversified'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.


Standard Diversified's Interest Coverage Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Standard Diversified's Interest Coverage distribution charts can be found below:

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



Standard Diversified 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.

Standard Diversified's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Standard Diversified's Interest Expense was $-20.2 Mil. Its Operating Income was $15.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $312.8 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2019 )/Interest Expense (A: Dec. 2019 )
=-1*15.422/-20.194
=0.76

Standard Diversified's Interest Coverage for the quarter that ended in Mar. 2020 is calculated as

Here, for the three months ended in Mar. 2020, Standard Diversified's Interest Expense was $-5.9 Mil. Its Operating Income was $6.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $311.5 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2020 )/Interest Expense (Q: Mar. 2020 )
=-1*6.663/-5.863
=1.14

* 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.


Standard Diversified  (AMEX:SDI) 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 .


Standard Diversified Interest Coverage Related Terms

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


Standard Diversified (Standard Diversified) Business Description

Traded in Other Exchanges
N/A
Address
155 Mineola Boulevard, Mineola, NY, USA, 11501
Standard Diversified Inc along with its subsidiary is engaged in tobacco products, Outdoor advertising, Insurance. The company operates through five reportable segments namely Smokeless Products, Smoking Products, Insurance, NewGen Products and Others. It generates revenue from the sale of its products to wholesale, distributors.
Executives
Bradford A Tobin officer: Secretary and General Counsel C/O STANDARD DIVERSIFIED OPPORTUNITIES, 155 MINEOLA BLVD., MINEOLA NY 11501
Helms Thomas F. Jr. director 5201 INTERCHANGE WAY, LOUISVILLE KY 40229
Zimmerman Arnold director 925 PARK AVE, 2A, NEW YORK NY 10028
Baxter Gregory H.a. director, officer: Exec. Chairman & Interim CEO C/O SPECIAL DIVERSIFIED OPPORTUNITIES, 1521 CONCORD PIKE, SUITE 301, WILMINGTON DE 19803
Soohyung Kim director, 10 percent owner, officer: See Footnote 3 C/O STANDARD GENERAL L.P., 767 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10153
Standard General L.p. 10 percent owner 767 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10153
Ian Estus director 460 HERNDON PARKWAY, SUITE 150, HERNDON VA 20170
Wayne P. Yetter director C/O EPICEPT CORPORATION, 777 OLD SAW MILL ROAD, TARRYTOWN NY 10591
Kelleher Thomas J /adv director C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Kenneth M Young director C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367
David Edward Glazek director 767 FIFTH AVENUE 12TH FL, NEW YORK NY 10153
P Standard General Ltd 10 percent owner C/O STANDARD GENERAL L.P., 767 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10153
Standard General Master Fund L.p. 10 percent owner C/O STANDARD GENERAL L.P., 767 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10153
Bryant R Riley 10 percent owner C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
B. Riley & Co., Llc 10 percent owner 11100 SANTA MONICA BLVD., STE. 800, LOS ANGELES CA 90025