Howden Joinery Group (LSE:HWDN) Interest Coverage : 22.55 (As of Dec. 2023)

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What is Howden Joinery Group 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. Howden Joinery Group's Operating Income for the six months ended in Dec. 2023 was £223 Mil. Howden Joinery Group's Interest Expense for the six months ended in Dec. 2023 was £-10 Mil. Howden Joinery Group's interest coverage for the quarter that ended in Dec. 2023 was 22.55. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Howden Joinery Group's Interest Coverage or its related term are showing as below:

LSE:HWDN' s Interest Coverage Range Over the Past 10 Years
Min: 18.82 Med: 75.9 Max: 1898
Current: 20.25

LSE:HWDN's Interest Coverage is ranked better than
65.4% of 315 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 8.89 vs LSE:HWDN: 20.25

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

Howden Joinery Group Interest Coverage Historical Data

The historical data trend for Howden Joinery Group'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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Howden Joinery Group Interest Coverage Chart

Howden Joinery Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

650.00

18.82

36.52

31.45

20.25

Howden Joinery Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															46.23	26.63	35.01	16.96	22.55

Competitive Comparison of Howden Joinery Group's Interest Coverage

For the Furnishings, Fixtures & Appliances subindustry, Howden Joinery Group'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.

Howden Joinery Group's Interest Coverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Howden Joinery Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Howden Joinery Group's Interest Coverage falls into.

Howden Joinery Group 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.

Howden Joinery Group'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, Howden Joinery Group's Interest Expense was £-17 Mil. Its Operating Income was £340 Mil. And its Long-Term Debt & Capital Lease Obligation was £599 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	340.2	/	-16.8
	=	20.25

Howden Joinery Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Howden Joinery Group's Interest Expense was £-10 Mil. Its Operating Income was £223 Mil. And its Long-Term Debt & Capital Lease Obligation was £599 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	223.2	/	-9.9
	=	22.55

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

Howden Joinery Group (LSE:HWDN) 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 .

Howden Joinery Group Interest Coverage Related Terms

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

Howden Joinery Group (LSE:HWDN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Howden Joinery Group PLC (LSE:HWDN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HWDJY:USA HWDJF:USA HWDNl:UK 10J:Germany

Address

40 Portman Square, London, GBR, W1H 6LT

Website

https://www.howdenjoinerygroupplc.com

Howden Joinery Group PLC is a U.K.-based company that manufactures, sources, and sells kitchen and joinery products. The Group's operations are mainly located in the United Kingdom with a small presence in France, Belgium, and the Republic of Ireland. It generates the majority of its revenue from the U.K. The firm caters to small, local homebuilders. The company's products are divided among its kitchen collection, which includes kitchen accessories and cabinets; the appliance collection, which includes ovens, refrigeration, dishwashers, and laundry; the doors and joinery collection, which includes internal, external, and sliding doors and frames; the hardware collection, which includes door handles and accessories; the flooring collection; and the bathroom cabinet collection.

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