Industria De Diseno Textil (WBO:ITX) Interest Coverage

: 13.33 (As of Jan. 2024)

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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. Industria De Diseno Textil's Operating Income for the three months ended in Jan. 2024 was €1,720 Mil. Industria De Diseno Textil's Interest Expense for the three months ended in Jan. 2024 was €-129 Mil. Industria De Diseno Textil's interest coverage for the quarter that ended in Jan. 2024 was 13.33. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Industria De Diseno Textil's Interest Coverage or its related term are showing as below:

WBO:ITX' s Interest Coverage Range Over the Past 10 Years
Min: 11.77 Med: 165.7 Max: 502.5
Current: 25.51

WBO:ITX's Interest Coverage is ranked better than
74.14% of 754 companies
in the Retail - Cyclical industry
Industry Median: 7.755 vs WBO:ITX: 25.51

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

Industria De Diseno Textil Interest Coverage Historical Data

The historical data trend for Industria De Diseno Textil'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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Industria De Diseno Textil Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

30.58

11.77

37.89

40.93

25.51

Industria De Diseno Textil Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage																25.25	34.49	35.79	39.00	13.33

Competitive Comparison

For the Apparel Retail subindustry, Industria De Diseno Textil'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.

Industria De Diseno Textil Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Industria De Diseno Textil's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Industria De Diseno Textil's Interest Coverage falls into.

Industria De Diseno Textil 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.

Industria De Diseno Textil's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Industria De Diseno Textil's Interest Expense was €-271 Mil. Its Operating Income was €6,913 Mil. And its Long-Term Debt & Capital Lease Obligation was €4,295 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	6913	/	-271
	=	25.51

Industria De Diseno Textil's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Industria De Diseno Textil's Interest Expense was €-129 Mil. Its Operating Income was €1,720 Mil. And its Long-Term Debt & Capital Lease Obligation was €4,295 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	1720	/	-129
	=	13.33

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

Industria De Diseno Textil (WBO:ITX) 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 .

Industria De Diseno Textil Interest Coverage Related Terms

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Industria De Diseno Textil (WBO:ITX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Industria De Diseno Textil SA (WBO:ITX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IDEXY:USA IDEXF:USA ITX:Mexico ITXe:UK 0QWI:UK ITX:Spain IXD1:Germany

Address

Edificio Inditex, Avenida de la Diputación, Arteixo, ESP, 15142

Website

https://www.inditex.com

Inditex is a multibrand fashion conglomerate, founded in 1985. Zara is its flagship brand (including Zara Home), generating just over 70% of revenue and 75% of profits. Other brands include Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Uterque. The company operates through 5,800-plus stores globally, over 1,800 of them belonging to the Zara brand. Sixty-five percent of revenue is generated in the European home market, while the Americas and Asia contribute 20% and 14%, respectively. The company keeps design in house while mostly outsourcing manufacturing (own manufacturing constitutes only a low-single-digit percentage of output). Over 50% of sourcing factories are in proximity to the company's headquarters in Spain.

Industria De Diseno Textil (WBO:ITX) Headlines

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