Arco Platform (Arco Platform) Interest Coverage : 0 (At Loss) (As of Jun. 2023)

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What is Arco Platform 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. Arco Platform's Operating Income for the three months ended in Jun. 2023 was $-8.2 Mil. Arco Platform's Interest Expense for the three months ended in Jun. 2023 was $-30.4 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

ARCE' s Interest Coverage Range Over the Past 10 Years
Min: 0.52 Med: 3.91 Max: 536.52
Current: 0.52

ARCE's Interest Coverage is not ranked
in the Education industry.
Industry Median: 15.35 vs ARCE: 0.52

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

Arco Platform Interest Coverage Historical Data

The historical data trend for Arco Platform'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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Arco Platform Interest Coverage Chart

Arco Platform Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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6.34

1.30

1.48

0.70

0.68

Arco Platform Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Interest Coverage	Get a 7-Day Free Trial															0.11	-	2.02	1.04	-

Competitive Comparison of Arco Platform's Interest Coverage

For the Education & Training Services subindustry, Arco Platform'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.

Arco Platform's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Arco Platform's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Arco Platform's Interest Coverage falls into.

Arco Platform 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.

Arco Platform'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, Arco Platform's Interest Expense was $-83.2 Mil. Its Operating Income was $56.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $357.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	56.341	/	-83.211
	=	0.68

Arco Platform's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, Arco Platform's Interest Expense was $-30.4 Mil. Its Operating Income was $-8.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $375.9 Mil.

Arco Platform did not have earnings to cover the interest expense.

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

Arco Platform (NAS:ARCE) 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 .

Arco Platform Interest Coverage Related Terms

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

Arco Platform (Arco Platform) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Arco Platform Ltd (NAS:ARCE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rua Augusta 2840, 9th Floor, Suite 91, Consolacao, Sao Paulo, SP, BRA, 01412-100

Website

https://www.arcoeducacao.com.br

Arco Platform Ltd provides a complete pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. Its turnkey curriculum solutions provide educational content in both printed and digital formats delivered through its platform to improve the learning process. Its operating segment includes Core Curriculum and Supplemental Solutions. It generates maximum revenue from the Core Curriculum segment. The Core Curriculum business segment provides solutions that address the Brazilian K-12 curriculum requirements through a personalized and interactive learning experience. Students Access content in various formats, such as digital, video, print, and other audiovisual formats that are aligned with the daily curriculum of their classes.