Monbat AD (LTS:0NH6) Interest Coverage : 2.99 (As of Sep. 2023)

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What is Monbat AD 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. Monbat AD's Operating Income for the three months ended in Sep. 2023 was лв7.5 Mil. Monbat AD's Interest Expense for the three months ended in Sep. 2023 was лв-2.5 Mil. Monbat AD's interest coverage for the quarter that ended in Sep. 2023 was 2.99. 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. Monbat ADs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

LTS:0NH6' s Interest Coverage Range Over the Past 10 Years
Min: 0.74 Med: 9.21 Max: 32
Current: 0.74

LTS:0NH6's Interest Coverage is ranked worse than
96.79% of 2303 companies
in the Industrial Products industry
Industry Median: 13.77 vs LTS:0NH6: 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.

Monbat AD Interest Coverage Historical Data

The historical data trend for Monbat AD'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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Monbat AD Interest Coverage Chart

Monbat AD Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

Get a 7-Day Free Trial

2.67

3.56

2.85

4.98

1.02

Monbat AD Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															3.42	-	2.65	1.42	2.99

Competitive Comparison of Monbat AD's Interest Coverage

For the Electrical Equipment & Parts subindustry, Monbat AD'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.

Monbat AD's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where Monbat AD's Interest Coverage falls into.

Monbat AD 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.

Monbat AD'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, Monbat AD's Interest Expense was лв-8.1 Mil. Its Operating Income was лв8.3 Mil. And its Long-Term Debt & Capital Lease Obligation was лв75.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	8.272	/	-8.145
	=	1.02

Monbat AD's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Monbat AD's Interest Expense was лв-2.5 Mil. Its Operating Income was лв7.5 Mil. And its Long-Term Debt & Capital Lease Obligation was лв57.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	7.512	/	-2.513
	=	2.99

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

Monbat AD (LTS:0NH6) 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 .

Monbat AD Interest Coverage Related Terms

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

Monbat AD (LTS:0NH6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Monbat AD (LTS:0NH6) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MONB:Bulgaria

Address

32 A Cherni vrah boulevard, Floor 4, Sofia, BGR, 1407

Website

https://www.monbatgroup.com

Monbat AD is a Bulgaria-based company engaged in the production and maintenance of and sale of batteries; engineering and development activity; production and trade of equipment used in battery manufacturing; domestic and foreign trade and establishment of commercial networks; specialized stores and representative offices; recycling of lead and lead containing alloys. The company's product range includes starter batteries, stationary batteries, deep cycle batteries, and leisure batteries, special batteries for military applications and locomotive batteries. Additionally, it is also involved in the production of light emitting diode (LED) lighting. The company operates geographically across Bulgaria, Serbia, Romania, Nigeria, and others.

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