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Euroseas (NAS:ESEA) Interest Coverage

: 13.44 (As of Dec. 2022)
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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. Euroseas's Operating Income for the three months ended in Dec. 2022 was $21.5 Mil. Euroseas's Interest Expense for the three months ended in Dec. 2022 was $-1.6 Mil. Euroseas's interest coverage for the quarter that ended in Dec. 2022 was 13.44. The higher the ratio, the stronger the company's financial strength is.

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

ESEA' s Interest Coverage Range Over the Past 10 Years
Min: 0.33   Med: 1.69   Max: 21.02
Current: 21.02


ESEA's Interest Coverage is ranked better than
73.02% of 756 companies
in the Transportation industry
Industry Median: 7.66 vs ESEA: 21.02

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


Euroseas Interest Coverage Historical Data

The historical data trend for Euroseas'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.

* Premium members only.

Euroseas Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.33 0.58 1.69 16.45 21.02

Euroseas Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 30.84 28.21 28.16 18.57 13.44

Competitive Comparison

For the Marine Shipping subindustry, Euroseas'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.

   

Euroseas Interest Coverage Distribution

For the Transportation industry and Industrials sector, Euroseas's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Euroseas's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.



Euroseas 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.


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

Euroseas's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Euroseas's Interest Expense was $-5.1 Mil. Its Operating Income was $106.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $51.8 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2022 )/Interest Expense (A: Dec. 2022 )
=-1*106.64/-5.073
=21.02

Euroseas's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the three months ended in Dec. 2022, Euroseas's Interest Expense was $-1.6 Mil. Its Operating Income was $21.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $51.8 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2022 )/Interest Expense (Q: Dec. 2022 )
=-1*21.46/-1.597
=13.44

* 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.


Euroseas  (NAS:ESEA) 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 .


Euroseas Interest Coverage Related Terms

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


Euroseas (NAS:ESEA) Business Description

Euroseas logo
Traded in Other Exchanges
Address
4 Messogiou and Evropis Street, Maroussi, GRC, 151 24
Euroseas Ltd is a shipping company. Its fleet consists of containerships that transport container boxes providing scheduled service between ports. Its operations are managed by an affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. The company employs its vessels on spot and period charters and through pool arrangements.

Euroseas (NAS:ESEA) Headlines

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