Carvana Co (Carvana Co) Interest Coverage : 0.77 (As of Mar. 2024)

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What is Carvana Co 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. Carvana Co's Operating Income for the three months ended in Mar. 2024 was $134 Mil. Carvana Co's Interest Expense for the three months ended in Mar. 2024 was $-173 Mil. Carvana Co's interest coverage for the quarter that ended in Mar. 2024 was 0.77. The higher the ratio, the stronger the company's financial strength is.

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

CVNA' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0.3
Current: 0.3

CVNA's Interest Coverage is ranked worse than
97.78% of 1038 companies
in the Vehicles & Parts industry
Industry Median: 7.695 vs CVNA: 0.30

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

Carvana Co Interest Coverage Historical Data

The historical data trend for Carvana Co'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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Carvana Co Interest Coverage Chart

Carvana Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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Carvana Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															-	0.30	0.32	-	0.77

Competitive Comparison of Carvana Co's Interest Coverage

For the Auto & Truck Dealerships subindustry, Carvana Co'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.

Carvana Co's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Carvana Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Carvana Co's Interest Coverage falls into.

Carvana Co 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.

Carvana Co'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, Carvana Co's Interest Expense was $-632 Mil. Its Operating Income was $-72 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,849 Mil.

Carvana Co did not have earnings to cover the interest expense.

Carvana Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Carvana Co's Interest Expense was $-173 Mil. Its Operating Income was $134 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,968 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	134	/	-173
	=	0.77

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

Carvana Co (NYSE:CVNA) 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 .

Carvana Co Interest Coverage Related Terms

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

Carvana Co (Carvana Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Carvana Co (NYSE:CVNA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CVNA:Mexico CV0:Germany CV0:Germany CV0:Germany

Address

300 E. Rio Salado Parkway, Tempe, AZ, USA, 85281

Website

https://www.carvana.com

Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.

Executives

Paul W. Breaux	officer: See Remarks	300 E RIO SALADO PKWY, TEMPE AZ 85281
Ecg Ii Spe, Llc	10 percent owner	1720 W. RIO SALADO PARKWAY, SUITE A, TEMPE AZ 85281
Thomas Taira	officer: President, Special Projects	300 E RIO SALADO PKWY, TEMPE AZ 85281
Daniel J. Gill	officer: Chief Product Officer	300 E RIO SALADO PKWY, TEMPE AZ 85281
Gregory B Sullivan	director	1930 W. RIO SALADO PARKWAY, TEMPE AZ 85281
Ira J. Platt	director	65 STURGES HWY, WESTPORT CT 06880
Michael E Maroone	director	909 POINCIANA DRIVE, FORT LAUDERDALE FL 33301
Garcia Ernest C Ii	10 percent owner	100 CRESCENT COURT, SUITE 1100, DALLAS TX 75201
Ryan S. Keeton	officer: Chief Brand Officer	300 E RIO SALADO PKWY, TEMPE AZ 85281
J Danforth Quayle	director	1930 W. RIO SALADO PARKWAY, TEMPE AZ 85281
Garcia Ernest C. Iii	director, 10 percent owner, officer: Chief Executive Officer	300 E RIO SALADO PKWY, TEMPE AZ 85281
Benjamin E. Huston	officer: Chief Operating Officer	300 E RIO SALADO PKWY, TEMPE AZ 85281
Mark W. Jenkins	officer: Chief Financial Officer	300 E RIO SALADO PKWY, TEMPE AZ 85281
Stephen R Palmer	officer: Vice President of Accounting	1930 W RIO SALADO PKWY, TEMPE AZ 85281
Neha Parikh	director	1930 W. RIO SALADO PARKWAY, TEMPE AZ 85281