Klabin (Klabin) Interest Coverage

: 1.53 (As of Dec. 2023)

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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. Klabin's Operating Income for the three months ended in Dec. 2023 was $200 Mil. Klabin's Interest Expense for the three months ended in Dec. 2023 was $-131 Mil. Klabin's interest coverage for the quarter that ended in Dec. 2023 was 1.53. The higher the ratio, the stronger the company's financial strength is.

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

KLBAY' s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 2.27 Max: 5.76
Current: 2.42

KLBAY's Interest Coverage is ranked worse than
67.33% of 202 companies
in the Forest Products industry
Industry Median: 6.175 vs KLBAY: 2.42

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

Klabin Interest Coverage Historical Data

The historical data trend for Klabin'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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Klabin Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.01

2.05

4.61

5.76

2.43

Klabin Quarterly Data
	Mar19	Jun19	Sep19	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															4.22	4.43	3.42	1.32	1.53

Competitive Comparison

For the Paper & Paper Products subindustry, Klabin'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.

Klabin Interest Coverage Distribution

For the Forest Products industry and Basic Materials sector, Klabin's Interest Coverage distribution charts can be found below:

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

Klabin 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.

Klabin'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, Klabin's Interest Expense was $-364 Mil. Its Operating Income was $882 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,409 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	882.156	/	-363.666
	=	2.43

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

Here, for the three months ended in Dec. 2023, Klabin's Interest Expense was $-131 Mil. Its Operating Income was $200 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,409 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	199.956	/	-130.653
	=	1.53

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

Klabin (OTCPK:KLBAY) 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 .

Klabin Interest Coverage Related Terms

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Klabin (Klabin) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Klabin SA (OTCPK:KLBAY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

KLBN11:Brazil KLBN4:Brazil KLBN3:Brazil

Address

Avenida Brigadeiro Faria Lima 3600, 3rd, 4th and 5th Floor, Itaim Bibi, Sao Paulo, SP, BRA, 04538-132

Website

https://www.klabin.com.br

Klabin SA manufactures and sells timber, pulp, and a variety of paper products. It owns and operates forests in Brazil and harvests timber. The timber is either sold to third parties or transported to the firm's mills, which produce pulp and paper products. The firm organizes itself into four segments based on product type: forestry, paper, conversion, and pulp. The forestry segment involves operations related to planting and growing pine and eucalyptus trees and selling timber to third parties; the other segments involve the production and sale of paper products. The paper and pulp segments contribute heavily to the company's overall revenue. Klabin has a global presence.

Klabin (Klabin) Headlines

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