Reservoir Media (Reservoir Media) Interest Coverage : 1.21 (As of Dec. 2023)

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What is Reservoir Media 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. Reservoir Media's Operating Income for the three months ended in Dec. 2023 was $6.5 Mil. Reservoir Media's Interest Expense for the three months ended in Dec. 2023 was $-5.4 Mil. Reservoir Media's interest coverage for the quarter that ended in Dec. 2023 was 1.21. The higher the ratio, the stronger the company's financial strength is.

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

RSVR' s Interest Coverage Range Over the Past 10 Years
Min: 1.43 Med: 1.78 Max: 2.04
Current: 1.49

RSVR's Interest Coverage is ranked worse than
88.52% of 610 companies
in the Media - Diversified industry
Industry Median: 11.915 vs RSVR: 1.49

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

Reservoir Media Interest Coverage Historical Data

The historical data trend for Reservoir Media'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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Reservoir Media Interest Coverage Chart

Reservoir Media Annual Data

Trend

Mar21

Mar22

Mar23

Interest Coverage

2.04

1.78

1.43

Reservoir Media Quarterly Data
	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial									1.12	3.36	0.66	1.07	1.21

Competitive Comparison of Reservoir Media's Interest Coverage

For the Entertainment subindustry, Reservoir Media'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.

Reservoir Media's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Reservoir Media's Interest Coverage distribution charts can be found below:

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

Reservoir Media 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.

Reservoir Media's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Reservoir Media's Interest Expense was $-14.8 Mil. Its Operating Income was $21.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $318.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	21.058	/	-14.756
	=	1.43

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

Here, for the three months ended in Dec. 2023, Reservoir Media's Interest Expense was $-5.4 Mil. Its Operating Income was $6.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $349.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	6.522	/	-5.372
	=	1.21

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

Reservoir Media (NAS:RSVR) 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 .

Reservoir Media Interest Coverage Related Terms

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

Reservoir Media (Reservoir Media) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Reservoir Media Inc (NAS:RSVR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

0RL0:Germany

Address

200 Varick Street, Suite 801A, New York, NY, USA, 10014

Website

https://www.reservoir-media.com

Reservoir Media Inc is an independent music company. The company's segment includes Music Publishing; Recorded Music and others. It generates maximum revenue from the Music Publishing segment.

Executives

Ezra S. Field	director	75 VARICK STREEET, 9TH FLOOR, NEW YORK NY 10013
Stephen M. Cook	director	75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Ryan P. Taylor	director	381 PARK AVENUE SOUTH, ROOM 1101, NEW YORK NY 10016
Essex Equity Joint Investment Vehicle, Llc	other: May Be Deemed a 10% Owner	375 HUDSON STREET, 12TH FLOOR, NEW YORK NY 10014
Richmond Hill Capital Partners, Lp	other: May be deemed a 10% owner	375 HUDSON STREET, 12TH FLOOR, NEW YORK NY 10014
James A Heindlmeyer	officer: Chief Financial Officer	75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Richmond Hill Advisors, Llc	other: May be deemed a 10% owner	375 HUDSON STREET, 12TH FLOOR, NEW YORK NY 10014
Golnar Khosrowshahi	director, officer: Chief Executive Officer	C/O RESTAURANT BRANDS INTERATIONAL INC., 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Richmond Hill Investments, Llc	10 percent owner	381 PARK AVENUE SOUTH, SUITE 1101, NEW YORK NY 10016
Adam Rothstein	director	101 CROSS HWY, WESTPORT CA 92610
Er Reservoir Llc	10 percent owner	C/O RICHMOND HILL INVESTMENTS, 375 HUDSON STREET, 12TH FLOOR, NEW YORK NY 10014
Lafargue Rell Q. Jr.	director, officer: President and COO	75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Gelder Neil De	director	75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Essex Equity Holdings, Llc	10 percent owner	381 PARK AVENUE SOUTH, ROOM 1101, NEW YORK NY 10016
Jennifer G. Koss	director	75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013