Mangels Industrial (BSP:MGEL4) Interest Coverage

: 2.41 (As of Dec. 2023)

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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. Mangels Industrial's Operating Income for the three months ended in Dec. 2023 was R$36.3 Mil. Mangels Industrial's Interest Expense for the three months ended in Dec. 2023 was R$-15.0 Mil. Mangels Industrial's interest coverage for the quarter that ended in Dec. 2023 was 2.41. 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. Mangels Industrial SA interest coverage is 1.35, which is low.

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

BSP:MGEL4' s Interest Coverage Range Over the Past 10 Years
Min: 0.14 Med: 1.36 Max: 5.32
Current: 1.35

BSP:MGEL4's Interest Coverage is ranked worse than
86.32% of 468 companies
in the Steel industry
Industry Median: 5.99 vs BSP:MGEL4: 1.35

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

Mangels Industrial Interest Coverage Historical Data

The historical data trend for Mangels Industrial'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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Mangels Industrial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.19

2.46

5.32

1.72

1.36

Mangels Industrial Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																0.01	1.16	1.34	0.65	2.41

Competitive Comparison

For the Steel subindustry, Mangels Industrial'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.

Mangels Industrial Interest Coverage Distribution

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

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

Mangels Industrial 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.

Mangels Industrial'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, Mangels Industrial's Interest Expense was R$-65.1 Mil. Its Operating Income was R$88.7 Mil. And its Long-Term Debt & Capital Lease Obligation was R$489.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	88.749	/	-65.11
	=	1.36

Mangels Industrial's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Mangels Industrial's Interest Expense was R$-15.0 Mil. Its Operating Income was R$36.3 Mil. And its Long-Term Debt & Capital Lease Obligation was R$489.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	36.259	/	-15.025
	=	2.41

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

Mangels Industrial (BSP:MGEL4) 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 .

Mangels Industrial Interest Coverage Related Terms

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

Mangels Industrial (BSP:MGEL4) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Mangels Industrial SA (BSP:MGEL4) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rua Verbo Divino 1488, 6º andar, Cj.61A e 64D, Chácara Santo, Antonio, Sao Paulo, SP, BRA, 04719904

Website

http://www.mangels.com.br

Mangels Industrial SA produces, markets, sells and distributes steel and related products. It operates in four segments, Steel, Wheel, Cylinder and Galvanizing. It supplies wheels to the car industry, motorcycles, trucks, buses, appliances, and gas companies; liquefied petroleum gas cylinders; air tanks for heavy vehicles, agricultural machinery, and air compressors; rear axles for light vehicles; and rolls, blanks, and sheets of low carbon and high strength steel for use in motorcycles, electronics and accessories, and hardware components.

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