Silvercorp Metals (TSX:SVM) Interest Coverage

: 352.53 (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. Silvercorp Metals's Operating Income for the three months ended in Dec. 2023 was C$24.0 Mil. Silvercorp Metals's Interest Expense for the three months ended in Dec. 2023 was C$-0.1 Mil. Silvercorp Metals's interest coverage for the quarter that ended in Dec. 2023 was 352.53. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Silvercorp Metals Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

TSX:SVM' s Interest Coverage Range Over the Past 10 Years
Min: 12.03 Med: 121.93 Max: 262.77
Current: 262.77

TSX:SVM's Interest Coverage is ranked worse than
66.89% of 1341 companies
in the Metals & Mining industry
Industry Median: No Debt vs TSX:SVM: 262.77

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

Silvercorp Metals Interest Coverage Historical Data

The historical data trend for Silvercorp Metals'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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Silvercorp Metals Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

96.75

82.20

213.46

199.81

194.56

Silvercorp Metals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																237.26	103.55	328.43	301.32	352.53

Competitive Comparison

For the Silver subindustry, Silvercorp Metals'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.

Silvercorp Metals Interest Coverage Distribution

For the Metals & Mining industry and Basic Materials sector, Silvercorp Metals's Interest Coverage distribution charts can be found below:

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

Silvercorp Metals 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.

Silvercorp Metals'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, Silvercorp Metals's Interest Expense was C$-0.4 Mil. Its Operating Income was C$75.1 Mil. And its Long-Term Debt & Capital Lease Obligation was C$0.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	75.101	/	-0.386
	=	194.56

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

Here, for the three months ended in Dec. 2023, Silvercorp Metals's Interest Expense was C$-0.1 Mil. Its Operating Income was C$24.0 Mil. And its Long-Term Debt & Capital Lease Obligation was C$0.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	23.972	/	-0.068
	=	352.53

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

Silvercorp Metals (TSX:SVM) 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 .

Silvercorp Metals Interest Coverage Related Terms

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

Silvercorp Metals (TSX:SVM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Silvercorp Metals Inc (TSX:SVM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SVM:USA S9Y:Germany S9Y:Germany

Address

1066 West Hastings Street, Suite 1750, Vancouver, BC, CAN, V6E 3X1

Website

http://www.silvercorp.ca

Silvercorp Metals Inc is a mineral mining company. It acquires, explores, develops, and mines precious and base metal mineral properties at its producing mines and exploration and development projects in China. The group produces silver, gold, lead, and zinc. The company creates shareholder's value by focusing on generating free cash flow from long-life mines; organic growth through extensive drilling for discovery; equity investments in potential world-class opportunities; ongoing merger and acquisition efforts to unlock value; and long-term commitment to responsible mining and ESG.