Volcan Compania MineraA (LIM:VOLCAAC1) Interest Coverage : 1.18 (As of Dec. 2023)

View and export this data going back to 1998. Start your Free Trial

What is Volcan Compania MineraA 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. Volcan Compania MineraA's Operating Income for the three months ended in Dec. 2023 was S/.75 Mil. Volcan Compania MineraA's Interest Expense for the three months ended in Dec. 2023 was S/.-64 Mil. Volcan Compania MineraA's interest coverage for the quarter that ended in Dec. 2023 was 1.18. 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. Volcan Compania Minera SAA interest coverage is 1.22, which is low.

The historical rank and industry rank for Volcan Compania MineraA's Interest Coverage or its related term are showing as below:

LIM:VOLCAAC1' s Interest Coverage Range Over the Past 10 Years
Min: 0.8 Med: 3.25 Max: 5.2
Current: 1.22

LIM:VOLCAAC1's Interest Coverage is ranked worse than
96.57% of 1341 companies
in the Metals & Mining industry
Industry Median: No Debt vs LIM:VOLCAAC1: 1.22

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

Volcan Compania MineraA Interest Coverage Historical Data

The historical data trend for Volcan Compania MineraA'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.

Volcan Compania MineraA Interest Coverage Chart

Volcan Compania MineraA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

0.87

3.25

1.53

1.23

Volcan Compania MineraA 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															-	2.03	-	1.79	1.18

Competitive Comparison of Volcan Compania MineraA's Interest Coverage

For the Other Industrial Metals & Mining subindustry, Volcan Compania MineraA'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.

Volcan Compania MineraA's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Volcan Compania MineraA's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Volcan Compania MineraA's Interest Coverage falls into.

Volcan Compania MineraA 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.

Volcan Compania MineraA'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, Volcan Compania MineraA's Interest Expense was S/.-216 Mil. Its Operating Income was S/.265 Mil. And its Long-Term Debt & Capital Lease Obligation was S/.2,464 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	265.198	/	-216.288
	=	1.23

Volcan Compania MineraA's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Volcan Compania MineraA's Interest Expense was S/.-64 Mil. Its Operating Income was S/.75 Mil. And its Long-Term Debt & Capital Lease Obligation was S/.2,464 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	75.291	/	-63.643
	=	1.18

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

Volcan Compania MineraA (LIM:VOLCAAC1) 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 .

Volcan Compania MineraA Interest Coverage Related Terms

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

Volcan Compania MineraA (LIM:VOLCAAC1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Volcan Compania Minera SAA (LIM:VOLCAAC1) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

VOLCABC1:Peru XVOLB:Spain

Address

Avenida Manuel Olguin 373, Santiago de Surco, Lima, PER

Website

https://www.volcan.com.pe

Volcan Compania Minera SAA is a Peruvian mining company. All of its operations are located in the central mountains of the Peruvian Andes, which include operating units such as Yauli, Chungar, Alpamarca, and Cerro de Pasco. These four operating units include a total of 10 mines, seven concentrator plants, and an oxide leaching plant. Zinc constitutes the largest contribution to consolidated revenue, and with silver, makes up the vast majority of sales. In addition to the zinc and silver business, the company also mines lead, copper, and gold.

Volcan Compania MineraA (LIM:VOLCAAC1) Headlines

No Headlines