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Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao (BSP:VLID3) Interest Coverage : 4.63 (As of Dec. 2023)


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What is Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao 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. Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Operating Income for the three months ended in Dec. 2023 was R$107 Mil. Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Expense for the three months ended in Dec. 2023 was R$-23 Mil. Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's interest coverage for the quarter that ended in Dec. 2023 was 4.63. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Coverage or its related term are showing as below:

BSP:VLID3' s Interest Coverage Range Over the Past 10 Years
Min: 0.56   Med: 2.23   Max: 4.63
Current: 1.93


BSP:VLID3's Interest Coverage is ranked worse than
88.3% of 795 companies
in the Business Services industry
Industry Median: 13.62 vs BSP:VLID3: 1.93

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


Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao Interest Coverage Historical Data

The historical data trend for Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao'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.

Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao Interest Coverage Chart

Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao 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 2.87 0.56 1.35 2.28 4.27

Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao 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 2.42 3.52 1.29 1.24 4.63

Competitive Comparison of Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Coverage

For the Specialty Business Services subindustry, Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao'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.


Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Coverage falls into.



Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao 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.

Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao'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, Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Expense was R$-103 Mil. Its Operating Income was R$440 Mil. And its Long-Term Debt & Capital Lease Obligation was R$538 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*440.216/-103.103
=4.27

Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Expense was R$-23 Mil. Its Operating Income was R$107 Mil. And its Long-Term Debt & Capital Lease Obligation was R$538 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*106.839/-23.086
=4.63

* 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.


Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao  (BSP:VLID3) 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 .


Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao Interest Coverage Related Terms

Thank you for viewing the detailed overview of Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao (BSP:VLID3) Business Description

Traded in Other Exchanges
N/A
Address
511 - Jardim Novo Mundo, Rua Laura Maiello Kook, Sorocaba, SP, BRA, 18052-445
Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao is engaged in the printing industry which includes security prints, lottery tickets, and systems which include electronic, plastic, and magnetic cards, card encoding, and development, implementation, and execution of electronic document management projects. The reporting segments of the company are means of payment which consists of cards for purposes like payments, identification, and customization, an identification which provides physical and electronic solutions, telecom which offers solutions like instant lottery tickets, and digital certification which offers products, services, consulting and technology for the issue, and use of global, private and Brazilian government certified digital certificates.

Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao (BSP:VLID3) Headlines

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