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GEA Group AG Interest Coverage

: 20.34 (As of Sep. 2021)
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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. GEA Group AG's Operating Income for the three months ended in Sep. 2021 was $138 Mil. GEA Group AG's Interest Expense for the three months ended in Sep. 2021 was $-7 Mil. GEA Group AG's interest coverage for the quarter that ended in Sep. 2021 was 20.34. The higher the ratio, the stronger the company's financial strength is.

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

OTCPK:GEAGF' s Interest Coverage Range Over the Past 10 Years
Min: 2.88   Med: 5.65   Max: 12.57
Current: 12.51

2.88
12.57

OTCPK:GEAGF's Interest Coverage is ranked lower than
58% of the 2073 Companies
in the Industrial Products industry.

( Industry Median: 17.59 vs. OTCPK:GEAGF: 12.51 )

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


GEA Group AG Interest Coverage Historical Data

The historical data trend for GEA Group AG'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.

GEA Group AG Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.74 11.15 8.85 5.64 9.50

GEA Group AG Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 12.24 6.82 10.45 16.17 20.34

Competitive Comparison

For the Specialty Industrial Machinery subindustry, GEA Group AG'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.

   

GEA Group AG Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, GEA Group AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where GEA Group AG's Interest Coverage falls into.



GEA Group AG 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.

GEA Group AG's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, GEA Group AG's Interest Expense was $-35 Mil. Its Operating Income was $331 Mil. And its Long-Term Debt & Capital Lease Obligation was $610 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*331.08759124088/-34.839416058394
=9.50

GEA Group AG's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, GEA Group AG's Interest Expense was $-7 Mil. Its Operating Income was $138 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*137.67529411765/-6.7682352941176
=20.34

* 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.


GEA Group AG  (OTCPK:GEAGF) 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 .


GEA Group AG Interest Coverage Related Terms

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


GEA Group AG Business Description

GEA Group AG logo
Industry
Industrials » Industrial Products NAICS : 333999 SIC : 3559
Traded in Other Exchanges
Address
Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468
GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using the company's specialised equipment.
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