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Compagnie Financiere Richemont Interest Coverage

: 17.36 (As of Mar. 2022)
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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. Compagnie Financiere Richemont's Operating Income for the six months ended in Mar. 2022 was $1,587 Mil. Compagnie Financiere Richemont's Interest Expense for the six months ended in Mar. 2022 was $-91 Mil. Compagnie Financiere Richemont's interest coverage for the quarter that ended in Mar. 2022 was 17.36. The higher the ratio, the stronger the company's financial strength is.

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

CFRHF' s Interest Coverage Range Over the Past 10 Years
Min: 5.5   Med: 21.23   Max: 63.74
Current: 17.34


CFRHF's Interest Coverage is ranked better than
60.48% of 797 companies
in the Retail - Cyclical industry
Industry Median: 10.92 vs CFRHF: 17.34

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


Compagnie Financiere Richemont Interest Coverage Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

* Premium members only.

Compagnie Financiere Richemont Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.50 12.85 7.90 8.15 17.35

Compagnie Financiere Richemont Semi-Annual Data
Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 43.88 4.30 13.49 17.33 17.36

Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont Interest Coverage Distribution

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

* The bar in red indicates where Compagnie Financiere Richemont's Interest Coverage falls into.



Compagnie Financiere Richemont 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.


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

Compagnie Financiere Richemont's Interest Coverage for the fiscal year that ended in Mar. 2022 is calculated as

Here, for the fiscal year that ended in Mar. 2022, Compagnie Financiere Richemont's Interest Expense was $-214 Mil. Its Operating Income was $3,706 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,012 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2022 )/Interest Expense (A: Mar. 2022 )
=-1*3705.9471365639/-213.6563876652
=17.35

Compagnie Financiere Richemont's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the six months ended in Mar. 2022, Compagnie Financiere Richemont's Interest Expense was $-91 Mil. Its Operating Income was $1,587 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,012 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*1587.0044052863/-91.409691629956
=17.36

* 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.


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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 .


Compagnie Financiere Richemont Interest Coverage Related Terms

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


Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

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