Plascar Participacoes Industriais (BSP:PLAS3) Interest Coverage : 0.21 (As of Mar. 2024)

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What is Plascar Participacoes Industriais 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. Plascar Participacoes Industriais's Operating Income for the three months ended in Mar. 2024 was R$3.5 Mil. Plascar Participacoes Industriais's Interest Expense for the three months ended in Mar. 2024 was R$-17.1 Mil. Plascar Participacoes Industriais's interest coverage for the quarter that ended in Mar. 2024 was 0.21. 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. Plascar Participacoes Industriais SAs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Plascar Participacoes Industriais's Interest Coverage or its related term are showing as below:

BSP:PLAS3' s Interest Coverage Range Over the Past 10 Years
Min: 0.05 Med: 0.3 Max: 0.68
Current: 0.64

BSP:PLAS3's Interest Coverage is ranked worse than
96.23% of 1035 companies
in the Vehicles & Parts industry
Industry Median: 7.73 vs BSP:PLAS3: 0.64

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

Plascar Participacoes Industriais Interest Coverage Historical Data

The historical data trend for Plascar Participacoes Industriais'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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Plascar Participacoes Industriais Interest Coverage Chart

Plascar Participacoes Industriais Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.09

0.05

0.50

Plascar Participacoes Industriais Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															-	2.87	0.04	-	0.21

Competitive Comparison of Plascar Participacoes Industriais's Interest Coverage

For the Auto Parts subindustry, Plascar Participacoes Industriais'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.

Plascar Participacoes Industriais's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Plascar Participacoes Industriais's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Plascar Participacoes Industriais's Interest Coverage falls into.

Plascar Participacoes Industriais 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.

Plascar Participacoes Industriais'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, Plascar Participacoes Industriais's Interest Expense was R$-100.5 Mil. Its Operating Income was R$50.2 Mil. And its Long-Term Debt & Capital Lease Obligation was R$140.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	50.202	/	-100.451
	=	0.50

Plascar Participacoes Industriais's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Plascar Participacoes Industriais's Interest Expense was R$-17.1 Mil. Its Operating Income was R$3.5 Mil. And its Long-Term Debt & Capital Lease Obligation was R$122.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	3.515	/	-17.132
	=	0.21

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

Plascar Participacoes Industriais (BSP:PLAS3) 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 .

Plascar Participacoes Industriais Interest Coverage Related Terms

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

Plascar Participacoes Industriais (BSP:PLAS3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Plascar Participacoes Industriais SA (BSP:PLAS3) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rua Wilhelm Winter, 300 Distrito Industrial, Jundiai, SP, BRA, CEP 13213-000

Website

https://www.plascar.com.br

Plascar Participacoes Industriais SA is engaged in manufacturing and distributing auto parts. The company with its subsidiaries is involved in the manufacturing and sales of pieces and parts related to internal and external finishing of automotive vehicles. In addition, the company is also involved in the manufacturing of non-automotive products, such as supermarket trolleys, multipurpose boxes, ecological pallets, and furniture. The company product portfolio includes products like includes bumpers, instrument panels, air diffusers, cup holders, side doors, door pockets, and carpets.

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