Insteel Industries (Insteel Industries) Interest Coverage : 280.00 (As of Mar. 2024)

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What is Insteel Industries 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. Insteel Industries's Operating Income for the three months ended in Mar. 2024 was $7.8 Mil. Insteel Industries's Interest Expense for the three months ended in Mar. 2024 was $-0.0 Mil. Insteel Industries's interest coverage for the quarter that ended in Mar. 2024 was 280.00. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Insteel Industries Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

IIIN' s Interest Coverage Range Over the Past 10 Years
Min: 33.08 Med: 305.06 Max: 1772.11
Current: 260.39

IIIN's Interest Coverage is ranked better than
88.84% of 2303 companies
in the Industrial Products industry
Industry Median: 13.77 vs IIIN: 260.39

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

Insteel Industries Interest Coverage Historical Data

The historical data trend for Insteel Industries'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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Insteel Industries Interest Coverage Chart

Insteel Industries Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

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33.08

230.56

928.75

1,772.11

399.00

Insteel Industries 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															250.26	622.15	292.70	-	280.00

Competitive Comparison of Insteel Industries's Interest Coverage

For the Metal Fabrication subindustry, Insteel Industries'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.

Insteel Industries's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Insteel Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Insteel Industries's Interest Coverage falls into.

Insteel Industries 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.

Insteel Industries's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Insteel Industries's Interest Expense was $-0.1 Mil. Its Operating Income was $34.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	34.713	/	-0.087
	=	399.00

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

Here, for the three months ended in Mar. 2024, Insteel Industries's Interest Expense was $-0.0 Mil. Its Operating Income was $7.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	7.84	/	-0.028
	=	280.00

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

Insteel Industries (NYSE:IIIN) 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 .

Insteel Industries Interest Coverage Related Terms

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

Insteel Industries (Insteel Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Insteel Industries Inc (NYSE:IIIN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HZ8:Germany

Address

1373 Boggs Drive, Mount Airy, NC, USA, 27030

Website

https://www.insteel.com

Insteel Industries Inc manufactures steel wire reinforcing products for concrete construction applications. It manufactures and markets PC strand and welded wire reinforcement, including ESM, concrete pipe reinforcement, and standard welded wire reinforcement. The company's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Its concrete reinforcing products consist of two product lines: PC strand and WWR. Insteel generates its geographical revenue from the United States.

Executives

James F Petelle	officer: Vice President	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Richard Wagner	officer: Vice President	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Elizabeth Carroll Southern	officer: Vice President-Administration	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Patrick K. Griffin	officer: Controller and CAO	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Scot R Jafroodi	officer: Chief Accounting Officer	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Woltz H O Iii	director, officer: President and CEO	1373 BOGGS DR, MT AIRY NC 27030
James R. York	officer: Senior Vice President	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Mark A Carano	officer: Vice President and CFO	13024 BALLANTYNE CORPORATE PLACE, #700, CHARLOTTE NC 28277
Joseph A Rutkowski	director	2100 REXFORD RD, CHARLOTTE NC 28211
Jon M Ruth	director	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
G Kennedy Thompson	director	3000 HANOVER STREET, PALO ALTO CA 94304
Anne H Lloyd	director
Michael C Gazmarian	officer: Treasurer	1373 BOGGS DR, MT AIRY NC 27030
Charles B Newsome	director	1373 BOGGS DR, MT AIRY NC 27030
Rogers W Allen Ii	director	1373 BOGGS DR, MT AIRY NC 27030