Res SpA (MIL:RES) Interest Coverage : 0 (At Loss) (As of Dec. 2023)

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What is Res SpA 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. Res SpA's Operating Income for the six months ended in Dec. 2023 was €1.76 Mil. Res SpA's Interest Expense for the six months ended in Dec. 2023 was €0.10 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

MIL:RES' s Interest Coverage Range Over the Past 10 Years
Min: 21.12 Med: 32.5 Max: 136.54
Current: 136.5

MIL:RES's Interest Coverage is ranked better than
91.18% of 170 companies
in the Waste Management industry
Industry Median: 4.875 vs MIL:RES: 136.50

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

Res SpA Interest Coverage Historical Data

The historical data trend for Res SpA'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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Res SpA Interest Coverage Chart

Res SpA Annual Data

Trend

Dec21

Dec22

Dec23

Interest Coverage

21.12

32.50

136.54

Res SpA Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	No Debt	23.41	-	12.35	-

Competitive Comparison of Res SpA's Interest Coverage

For the Waste Management subindustry, Res SpA'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.

Res SpA's Interest Coverage Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Res SpA's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Res SpA's Interest Coverage falls into.

Res SpA 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.

Res SpA'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, Res SpA's Interest Expense was €-0.02 Mil. Its Operating Income was €3.28 Mil. And its Long-Term Debt & Capital Lease Obligation was €10.15 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3.277	/	-0.024
	=	136.54

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

Here, for the six months ended in Dec. 2023, Res SpA's Interest Expense was €0.10 Mil. Its Operating Income was €1.76 Mil. And its Long-Term Debt & Capital Lease Obligation was €10.15 Mil.

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

Res SpA (MIL:RES) 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 .

Res SpA Interest Coverage Related Terms

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

Res SpA (MIL:RES) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Res SpA (MIL:RES) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Pettoranello del Molise, Zona Industriale, ITA, 86090

Website

https://www.recuperoeticosostenibile.it

Res SpA operates in the waste sector. The business activity is mainly focused on the collection and sorting of materials. The company deals with the entire waste management process from selection to functional treatment and transformation to the regeneration and recovery of waste and reuse as production raw materials.