Construtora Tenda (BSP:TEND3) Interest Coverage : 0.95 (As of Dec. 2023)

View and export this data going back to 2017. Start your Free Trial

What is Construtora Tenda 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. Construtora Tenda's Operating Income for the three months ended in Dec. 2023 was R$46 Mil. Construtora Tenda's Interest Expense for the three months ended in Dec. 2023 was R$-49 Mil. Construtora Tenda's interest coverage for the quarter that ended in Dec. 2023 was 0.95. The higher the ratio, the stronger the company's financial strength is.

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

BSP:TEND3' s Interest Coverage Range Over the Past 10 Years
Min: 0.74 Med: 6.62 Max: 13.88
Current: 0.74

BSP:TEND3's Interest Coverage is ranked worse than
89.78% of 1350 companies
in the Real Estate industry
Industry Median: 3.97 vs BSP:TEND3: 0.74

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

Construtora Tenda Interest Coverage Historical Data

The historical data trend for Construtora Tenda'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.

Construtora Tenda Interest Coverage Chart

Construtora Tenda Annual Data

Trend

Dec13

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

6.03

8.71

0.86

Construtora Tenda Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	0.64	0.24	0.94	0.95

Competitive Comparison of Construtora Tenda's Interest Coverage

For the Real Estate - Development subindustry, Construtora Tenda'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.

Construtora Tenda's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Construtora Tenda's Interest Coverage distribution charts can be found below:

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

Construtora Tenda 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.

Construtora Tenda'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, Construtora Tenda's Interest Expense was R$-177 Mil. Its Operating Income was R$152 Mil. And its Long-Term Debt & Capital Lease Obligation was R$830 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	151.659	/	-177.354
	=	0.86

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

Here, for the three months ended in Dec. 2023, Construtora Tenda's Interest Expense was R$-49 Mil. Its Operating Income was R$46 Mil. And its Long-Term Debt & Capital Lease Obligation was R$830 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	45.915	/	-48.579
	=	0.95

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

Construtora Tenda (BSP:TEND3) 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 .

Construtora Tenda Interest Coverage Related Terms

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

Construtora Tenda (BSP:TEND3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Construtora Tenda SA (BSP:TEND3) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Rua Boa Vista, 280, Sao Paulo, SP, BRA, 01010-001

Website

https://www.tenda.com

Construtora Tenda SA is engaged in the performance of general construction works, real estate development, real estate purchase, and sale, the provision of general construction management services, the intermediation of the sale of consortium shares, and the holding of interests in other companies. The SPEs are exclusively engaged in real estate operations and are linked to specific projects. The company concentrates its activities in nine metropolitan regions of Brazil, uniquely operating within bracket 2 of the Casa Verde e Amarela federal government housing program. The company focuses on affordable housing which allows it to pursue scale gains and continuous improvement. It has a single SKU for no-elevator buildings.

Construtora Tenda (BSP:TEND3) Headlines

No Headlines