ARKO (ARKO) Interest Coverage : 1.04 (As of Dec. 2023)

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What is ARKO 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. ARKO's Operating Income for the three months ended in Dec. 2023 was $25 Mil. ARKO's Interest Expense for the three months ended in Dec. 2023 was $-24 Mil. ARKO's interest coverage for the quarter that ended in Dec. 2023 was 1.04. The higher the ratio, the stronger the company's financial strength is.

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

ARKO' s Interest Coverage Range Over the Past 10 Years
Min: 0.03 Med: 1.42 Max: 2.67
Current: 1.29

ARKO's Interest Coverage is ranked worse than
88.46% of 754 companies
in the Retail - Cyclical industry
Industry Median: 7.83 vs ARKO: 1.29

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

ARKO Interest Coverage Historical Data

The historical data trend for ARKO'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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ARKO Interest Coverage Chart

ARKO Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

0.03

1.55

1.91

2.67

1.29

ARKO Quarterly Data
	Dec18	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													1.99	0.43	1.76	1.84	1.04

Competitive Comparison of ARKO's Interest Coverage

For the Specialty Retail subindustry, ARKO'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.

ARKO's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, ARKO's Interest Coverage distribution charts can be found below:

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

ARKO 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.

ARKO'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, ARKO's Interest Expense was $-92 Mil. Its Operating Income was $118 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,437 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	118.014	/	-91.516
	=	1.29

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

Here, for the three months ended in Dec. 2023, ARKO's Interest Expense was $-24 Mil. Its Operating Income was $25 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,437 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	25.307	/	-24.278
	=	1.04

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

ARKO (NAS:ARKO) 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 .

ARKO Interest Coverage Related Terms

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

ARKO (ARKO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » ARKO Corp (NAS:ARKO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

8565 Magellan Parkway, Suite 400, Richmond, VA, USA, 23227-1150

Website

https://www.arkocorp.com

ARKO Corp operates as a holding company. The company, through its subsidiaries, owns and operates convenience stores in the United States. Some of its regional store brands include Stop, Admiral, Apple Market, BreadBox, E-Z Mart, fas mart, Li'l Cricket, and Next Door Store. Its retail store offers hot food service, beverages, cigarettes & other tobacco products, candy, salty snacks, grocery, beer, and general merchandise. ARKO operates in four segments: Retail segment, Wholesale segment, fleet fueling segment, and GPM Petroleum segment. The company derives the majority of its revenue from retail and wholesale distribution of fuel.

Executives

Karet Laura Shapira	director	301 GLADE RUN LANE, PITTSBURGH PA 15238
Avram Z Friedman	director	DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Eyal Nuchamovitz	officer: See Remarks	3284 NE 211 TERRACE, AVENTURA FL 33180
Kempner Partners Davidson	10 percent owner	C/O MHD MANAGEMENT CO., 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Gpm Owner Llc	10 percent owner	520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Starlette B Johnson	director
Anthony Alexander Yoseloff	10 percent owner	DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Long-term Distressed Opportunities Fund Ii Lp	10 percent owner	DK LONG-TERM DISTRESSED OPPS GP II LLC, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Capital Management Lp	10 percent owner	520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Long-term Distressed Opportunties International Master Fund Ii Lp	10 percent owner	DK LONG-TERM DISTRESSED OPPS GP II LLC, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Institutional Partners, L.p.	10 percent owner	C/O DAVIDSON KEMPNER ADVISERS INC., 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner International, Ltd.	10 percent owner	C/O OFFSHORE INCORPORATION LTD, OFFSHORE, INCORPORATION CENTRE, POBOX 957, RD TOWN, TORTOLA D8 00000
Andrew R Heyer	director	501 MADISON AVENUE, FLOOR 5, NEW YORK NY 10019
Michael J Gade	director	5501 HEADQUARTERS DRIVE, PLANO TX 75024
Sherman Iii Edmiston	director	ONE CITYPLACE DRIVE, SUITE 300, ONE CITYPLACE DRIVE, SUITE 300, ST. LOUIS MO 63141