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Echeverria Izquierdo (XSGO:EISA) Interest Coverage : 1.67 (As of Dec. 2023)


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What is Echeverria Izquierdo 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. Echeverria Izquierdo's Operating Income for the three months ended in Dec. 2023 was CLP5,279 Mil. Echeverria Izquierdo's Interest Expense for the three months ended in Dec. 2023 was CLP-3,154 Mil. Echeverria Izquierdo's interest coverage for the quarter that ended in Dec. 2023 was 1.67. 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. Echeverria Izquierdo SA interest coverage is 2.02, which is low.

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

XSGO:EISA' s Interest Coverage Range Over the Past 10 Years
Min: 1.39   Med: 5.63   Max: 21.02
Current: 2.02


XSGO:EISA's Interest Coverage is ranked worse than
80.46% of 1264 companies
in the Construction industry
Industry Median: 7.055 vs XSGO:EISA: 2.02

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


Echeverria Izquierdo Interest Coverage Historical Data

The historical data trend for Echeverria Izquierdo'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.

Echeverria Izquierdo Interest Coverage Chart

Echeverria Izquierdo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.35 1.93 2.82 1.39 2.12

Echeverria Izquierdo 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.76 2.45 1.86 2.02 1.67

Competitive Comparison of Echeverria Izquierdo's Interest Coverage

For the Engineering & Construction subindustry, Echeverria Izquierdo'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.


Echeverria Izquierdo's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Echeverria Izquierdo's Interest Coverage distribution charts can be found below:

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



Echeverria Izquierdo 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.

Echeverria Izquierdo'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, Echeverria Izquierdo's Interest Expense was CLP-14,584 Mil. Its Operating Income was CLP30,874 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP32,797 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*30874.22/-14583.983
=2.12

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

Here, for the three months ended in Dec. 2023, Echeverria Izquierdo's Interest Expense was CLP-3,154 Mil. Its Operating Income was CLP5,279 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP32,797 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*5279.197/-3154.372
=1.67

* 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.

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


Echeverria Izquierdo  (XSGO:EISA) 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 .


Echeverria Izquierdo Interest Coverage Related Terms

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


Echeverria Izquierdo (XSGO:EISA) Business Description

Traded in Other Exchanges
N/A
Address
Rosario Norte 532, 8th Floor, Las Condes, Santiago, CHL
Echeverria Izquierdo SA is an engineering and construction company. The Company is also involved in real estate development, industrial assembly, and deep foundations. Echeverria is based in Santiago, Chile. It provides industrial installations, industrial maintenance, industrial solutions.

Echeverria Izquierdo (XSGO:EISA) Headlines

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