A2A SpA (WBO:A2A) Interest Coverage

: N/A (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. A2A SpA's Operating Income for the three months ended in Dec. 2023 was €0 Mil. A2A SpA's Interest Expense for the three months ended in Dec. 2023 was €0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. A2A SpA interest coverage is 4.01, which is low.

The historical rank and industry rank for A2A SpA's Interest Coverage or its related term are showing as below:

WBO:A2A' s Interest Coverage Range Over the Past 10 Years
Min: 3.18 Med: 6.73 Max: 9.81
Current: 4.01

WBO:A2A's Interest Coverage is ranked better than
51.58% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs WBO:A2A: 4.01

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

A2A SpA Interest Coverage Historical Data

The historical data trend for A2A SpA'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.

* Premium members only.

A2A SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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6.99

7.21

9.81

7.29

6.05

A2A SpA Quarterly Data
	Mar16	Jun16	Sep16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.96	9.23	N/A	3.13	N/A

Competitive Comparison

For the Utilities - Diversified subindustry, A2A SpA'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.

A2A SpA Interest Coverage Distribution

For the Utilities - Regulated industry and Utilities sector, A2A SpA's Interest Coverage distribution charts can be found below:

* The bar in red indicates where A2A SpA's Interest Coverage falls into.

A2A SpA 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.

A2A SpA'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, A2A SpA's Interest Expense was €-167 Mil. Its Operating Income was €1,011 Mil. And its Long-Term Debt & Capital Lease Obligation was €5,576 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1011	/	-167
	=	6.05

A2A SpA's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, A2A SpA's Interest Expense was €0 Mil. Its Operating Income was €0 Mil. And its Long-Term Debt & Capital Lease Obligation was €5,576 Mil.

GuruFocus does not calculate A2A SpA's interest coverage with the available data.

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

A2A SpA (WBO:A2A) 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 .

A2A SpA Interest Coverage Related Terms

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A2A SpA (WBO:A2A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » A2A SpA (WBO:A2A) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

A2A:Italy A2Am:UK 0N54:UK EAM:Germany

Address

Via Lamarmora 230, Brescia, ITA, 25124

Website

https://www.gruppoa2a.it

A2A SpA together with its subsidiaries is engaged in the production, sale, and distribution of electricity; sale and distribution of gas; production, distribution, and sale of heat through district heating networks and integrated water cycle management.

A2A SpA (WBO:A2A) Headlines

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