Magna International (Magna International) Interest Coverage : 3.77 (As of Dec. 2023)

View and export this data going back to 1992. Start your Free Trial

What is Magna International 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. Magna International's Operating Income for the three months ended in Dec. 2023 was $524 Mil. Magna International's Interest Expense for the three months ended in Dec. 2023 was $-139 Mil. Magna International's interest coverage for the quarter that ended in Dec. 2023 was 3.77. The higher the ratio, the stronger the company's financial strength is.

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

MGA' s Interest Coverage Range Over the Past 10 Years
Min: 8.42 Med: 23.9 Max: 52.72
Current: 8.43

MGA's Interest Coverage is ranked better than
52.47% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.77 vs MGA: 8.43

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

Magna International Interest Coverage Historical Data

The historical data trend for Magna International'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.

Magna International Interest Coverage Chart

Magna International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

22.76

14.16

15.70

12.48

8.42

Magna International 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															5.47	20.20	16.68	11.08	3.77

Competitive Comparison of Magna International's Interest Coverage

For the Auto Parts subindustry, Magna International'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.

Magna International's Interest Coverage Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Magna International's Interest Coverage falls into.

Magna International 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.

Magna International'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, Magna International's Interest Expense was $-242 Mil. Its Operating Income was $2,038 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,494 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2038	/	-242
	=	8.42

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

Here, for the three months ended in Dec. 2023, Magna International's Interest Expense was $-139 Mil. Its Operating Income was $524 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,494 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	524	/	-139
	=	3.77

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

Magna International (NYSE:MGA) 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 .

Magna International Interest Coverage Related Terms

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

Magna International (Magna International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Magna International Inc (NYSE:MGA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MGA N:Mexico MGA:Germany MGA:Germany MG:Canada

Address

337 Magna Drive, Aurora, ON, CAN, L4G 7K1

Website

https://www.magna.com

Magna International prides itself on a highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2022, roughly 50% of Magna's revenue came from North America while Europe accounted for approximately 38%.