Party City Holdco (Party City Holdco) Interest Coverage : 0 (At Loss) (As of Sep. 2022)

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What is Party City Holdco 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. Party City Holdco's Operating Income for the three months ended in Sep. 2022 was $-21 Mil. Party City Holdco's Interest Expense for the three months ended in Sep. 2022 was $-27 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 Party City Holdco's Interest Coverage or its related term are showing as below:

PRTYQ's Interest Coverage is not ranked ^*
in the Retail - Cyclical industry.
Industry Median: 7.87
* Ranked among companies with meaningful Interest Coverage only.

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

Party City Holdco Interest Coverage Historical Data

The historical data trend for Party City Holdco'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.

Party City Holdco Interest Coverage Chart

Party City Holdco Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Interest Coverage

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3.18

2.59

0.99

1.10

Party City Holdco Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Interest Coverage	Get a 7-Day Free Trial															0.84	0.49	-	0.44	-

Competitive Comparison of Party City Holdco's Interest Coverage

For the Specialty Retail subindustry, Party City Holdco'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.

Party City Holdco's Interest Coverage Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Party City Holdco's Interest Coverage falls into.

Party City Holdco 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.

Party City Holdco's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Party City Holdco's Interest Expense was $-87 Mil. Its Operating Income was $96 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,007 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2021 )	/	Interest Expense (A: Dec. 2021 )
	=	-1	*	96.33	/	-87.226
	=	1.10

Party City Holdco's Interest Coverage for the quarter that ended in Sep. 2022 is calculated as

Here, for the three months ended in Sep. 2022, Party City Holdco's Interest Expense was $-27 Mil. Its Operating Income was $-21 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,018 Mil.

Party City Holdco did not have earnings to cover the interest expense.

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

Party City Holdco (OTCPK:PRTYQ) 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 .

Party City Holdco Interest Coverage Related Terms

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

Party City Holdco (Party City Holdco) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Party City Holdco Inc (OTCPK:PRTYQ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

80 Grasslands Road, Elmsford, NY, USA, 10523

Website

https://www.partycity.com

Party City Holdco Inc is a party goods retailer in North America that operates owned and franchised locations in the us, Canada, and Puerto Rico. Party City also sells internationally in countries like the UK, France, Germany, and Australia, among others. The company has two primary reporting segments: retail and wholesale. The retail operations sell through Anagram, Amscan, Designware, Costumes USA, and other party suppliers, such as Party City, Halloween City, and PartyCity.com. The wholesale segment sells party goods such as paper and plastic tableware, accessories and novelties, balloons, stationery, and gift items for all occasions. These products are sold by franchise stores, mass merchants, independent card and gift shops, dollar stores, and other retailers and global distributors.

Executives

Clifford Sosin	10 percent owner	8 WRIGHT STREET, 1ST FL, WESTPORT CT 06880
John Capela	officer: See Remarks	779 HIGHLAND AVENUE, PARAMUS NJ 07652
Peter Royer Smith	officer: Chief Operations Officer	3438 PEACHTREE ROAD NE, SUITE 1800, ATLANTA GA 30326
De Mesa Graziano Cheryl	officer: Chief Accounting Officer	80 GRASSLANDS ROAD, ELMSFORD NY 10523
Steven J Collins	director	29 VINTON STREET, #5, BOSTON MA 02127
William S. Creekmuir	director	SIX CONCOURSE PARKWAY, SUITE 3300-A, ATLANTA GA 30328
John Frascotti	director	C/O HASBRO, INC. 1011 NEWPORT AVENUE, PAWTUCKET RI 02862
Shroff Michelle Millstone	director	C/O PARTY CITY HOLDCO INC., 80 GRASSLANDS ROAD, ELMSFORD NY 10523
James M Harrison	director	GOLDMAN, SACHS & CO., 85 BROAD ST, NEW YORK NY 10004
Reginald Rasch	officer: See Remarks	80 GRASSLANDS ROAD, ELMSFORD NY 10523
Sean Thompson	officer: See Remarks	80 GRASSLANDS ROAD, ELMSFORD NY 10523
Sarah Dodds-brown	director	80 GRASSLANDS ROAD, ELMSFORD NY 10523
Jennifer Fleiss	director	80 GRASSLANDS ROAD, ELMSFORD NY 10523
Joel Alsfine	director	2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Norman S Matthews	director	650 MADISON AVENUE, 23RD FLOOR, NEW YORK NY 10022