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BMC Stock Holdings (BMC Stock Holdings) Interest Coverage : 10.65 (As of Sep. 2020)


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What is BMC Stock Holdings 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. BMC Stock Holdings's Operating Income for the three months ended in Sep. 2020 was $61 Mil. BMC Stock Holdings's Interest Expense for the three months ended in Sep. 2020 was $-6 Mil. BMC Stock Holdings's interest coverage for the quarter that ended in Sep. 2020 was 10.65. The higher the ratio, the stronger the company's financial strength is.

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

BMCH' s Interest Coverage Range Over the Past 10 Years
Min: 1.28   Med: 3.68   Max: 8.19
Current: 8.19


BMCH's Interest Coverage is not ranked
in the Construction industry.
Industry Median: 7.06 vs BMCH: 8.19

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


BMC Stock Holdings Interest Coverage Historical Data

The historical data trend for BMC Stock Holdings'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.

BMC Stock Holdings Interest Coverage Chart

BMC Stock Holdings Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.28 3.68 4.67 7.25 7.10

BMC Stock Holdings Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.51 6.46 5.68 10.10 10.65

Competitive Comparison of BMC Stock Holdings's Interest Coverage

For the Building Products & Equipment subindustry, BMC Stock Holdings'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.


BMC Stock Holdings's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, BMC Stock Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where BMC Stock Holdings's Interest Coverage falls into.



BMC Stock Holdings 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.

BMC Stock Holdings's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, BMC Stock Holdings's Interest Expense was $-23 Mil. Its Operating Income was $164 Mil. And its Long-Term Debt & Capital Lease Obligation was $474 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2019 )/Interest Expense (A: Dec. 2019 )
=-1*164.45/-23.156
=7.10

BMC Stock Holdings's Interest Coverage for the quarter that ended in Sep. 2020 is calculated as

Here, for the three months ended in Sep. 2020, BMC Stock Holdings's Interest Expense was $-6 Mil. Its Operating Income was $61 Mil. And its Long-Term Debt & Capital Lease Obligation was $465 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2020 )/Interest Expense (Q: Sep. 2020 )
=-1*61.156/-5.744
=10.65

* 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.

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


BMC Stock Holdings  (NAS:BMCH) 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 .


BMC Stock Holdings Interest Coverage Related Terms

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


BMC Stock Holdings (BMC Stock Holdings) Business Description

Traded in Other Exchanges
N/A
Address
8020 Arco Corporate Drive, Suite 400, Raleigh, NC, USA, 27617
BMC Stock Holdings Inc is a diversified lumber and building materials distributor and solutions provider. Its primary products are lumber and lumber sheet goods, millwork, doors, flooring, windows, and structural components, among others. The company offers services such as lock keying, decking and docking, cabinet specialists, showroom and design centers, window and door replacement, and others. It sells its products under the brand name Metrie, Huber, Trex, James Hardie, and Jeld-Wen among others. The company's reportable divisions are the Mid-Atlantic, Southeast, Texas, Intermountain and Western divisions.
Executives
Major James F. Jr. officer: See Remarks C/O STOCK BUILDING SUPPLY HOLDINGS, INC. 8020 ARCO CORPORATE DRIVE RALEIGH NC 27617
David E Flitman director, officer: See Remarks C/O NALCO COMPANY, 1601 WEST DIEHL ROAD, NAPERVILLE IL 60563
James Oleary director
David W Bullock director C/O GRAHAM PACKAGING HOLDINGS COMPANY, 2401 PLEASANT VALLEY ROAD, YORK PA 17402
Boydston Cory Jacobs director C/O BMC STOCK HOLDINGS, INC., 4800 FALLS OF NEUSE RD, SUITE 400, RALEIGH NC 27617
Henry Buckley director TWO LAKE SIDE COMMONS - BUILDING TWO 980 HAMMOND DRIVE,SUITE 500 ATLANTA GA 30328
David L. Keltner director C/O STOCK BUILDING SUPPLY HOLDINGS, INC. 8020 ARCO CORPORATE DR RALEIGH NC 27617
Michael Thomas Miller director C/O INSTALLED BUILDING PRODUCTS, INC., 495 SOUTH HIGH STREET, SUITE 50, COLUMBUS OH 43215
Mark A Alexander director C/O W. P. CAREY INC., 395 9TH AVENUE, 58TH FLOOR, NEW YORK, NEW YORK NY 10001
Vertuca Carl R Jr director 11101 W. 120TH AVENUE, SUITE 200, BROOMFIELD CO 80021
Cheemin Bo-linn director 4555 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Timothy D Johnson officer: See Remarks 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Michael Alan Farmer officer: See Remarks C/O BMC STOCK HOLDINGS, INC., 4800 FALLS OF NEUSE RD, SUITE 400, RALEIGH NC 27609
Lisa M. Hamblet officer: See Remarks C/O STOCK BUILDING SUPPLY HOLDINGS, INC. 8020 ARCO CORPORATE DRIVE RALEIGH NC 27617
Jeffrey Gene Rea director C/O STOCK BUILDING SUPPLY HOLDINGS, INC., 8020 ARCO CORPORATE DRIVE, SUITE 400, RALEIGH NC 27617

BMC Stock Holdings (BMC Stock Holdings) Headlines