Servizi Italia SpA (MIL:SRI) Interest Coverage : 1.79 (As of Sep. 2023)

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What is Servizi Italia 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. Servizi Italia SpA's Operating Income for the three months ended in Sep. 2023 was €3.1 Mil. Servizi Italia SpA's Interest Expense for the three months ended in Sep. 2023 was €-1.7 Mil. Servizi Italia SpA's interest coverage for the quarter that ended in Sep. 2023 was 1.79. 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. Servizi Italia SpAs 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 Servizi Italia SpA's Interest Coverage or its related term are showing as below:

MIL:SRI' s Interest Coverage Range Over the Past 10 Years
Min: 0.59 Med: 4.9 Max: 8.26
Current: 0.59

MIL:SRI's Interest Coverage is ranked worse than
96.97% of 792 companies
in the Business Services industry
Industry Median: 13.385 vs MIL:SRI: 0.59

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

Servizi Italia SpA Interest Coverage Historical Data

The historical data trend for Servizi Italia 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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Servizi Italia SpA Interest Coverage Chart

Servizi Italia SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.10

0.83

0.59

Servizi Italia SpA 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															-	0.83	3.99	1.79	-

Competitive Comparison of Servizi Italia SpA's Interest Coverage

For the Specialty Business Services subindustry, Servizi Italia 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.

Servizi Italia SpA's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Servizi Italia SpA's Interest Coverage distribution charts can be found below:

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

Servizi Italia 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.

Servizi Italia 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, Servizi Italia SpA's Interest Expense was €-12.6 Mil. Its Operating Income was €7.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €66.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	7.514	/	-12.64
	=	0.59

Servizi Italia SpA's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Servizi Italia SpA's Interest Expense was €-1.7 Mil. Its Operating Income was €3.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €63.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	3.117	/	-1.743
	=	1.79

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

Servizi Italia SpA (MIL:SRI) 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 .

Servizi Italia SpA Interest Coverage Related Terms

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

Servizi Italia SpA (MIL:SRI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Servizi Italia SpA (MIL:SRI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SRIm:UK

Address

Via San Pietro 59/B, Castellina di Soragna, ITA, 43019

Website

https://www.servizitaliagroup.com

Servizi Italia SpA is an Italy-based company. Together with its subsidiaries, the firm operates in three segments including Wash hire, Linen sterilisation, and Sterilisation of surgical instruments. Wash hire segment includes planning and provision of integrated hire, reconditioning and logistics services for textile items, mattresses, and accessories. Linen sterilisation includes the planning and rental of sterile medical devices. Sterilisation of surgical instruments includes planning and provision of washing, packaging and sterilisation services for surgical instruments and accessories. The majority of the revenues are generated from the Wash Hire segment. The group operates in Turkey, Brazil, and Italy, out of which the majority of the revenue comes from Italy.