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SBLK (Star Bulk Carriers) Interest Coverage : 4.29 (As of Jun. 2024)


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What is Star Bulk Carriers 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. Star Bulk Carriers's Operating Income for the three months ended in Jun. 2024 was $112 Mil. Star Bulk Carriers's Interest Expense for the three months ended in Jun. 2024 was $-26 Mil. Star Bulk Carriers's interest coverage for the quarter that ended in Jun. 2024 was 4.29. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Star Bulk Carriers's Interest Coverage or its related term are showing as below:

SBLK' s Interest Coverage Range Over the Past 10 Years
Min: 0.81   Med: 2.2   Max: 15.43
Current: 3.65


SBLK's Interest Coverage is ranked worse than
62.64% of 819 companies
in the Transportation industry
Industry Median: 5.76 vs SBLK: 3.65

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


Star Bulk Carriers Interest Coverage Historical Data

The historical data trend for Star Bulk Carriers'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.

Star Bulk Carriers Interest Coverage Chart

Star Bulk Carriers 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 0.97 1.18 15.43 11.13 2.72

Star Bulk Carriers Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 3.56 2.35 3.21 4.43 4.29

Competitive Comparison of Star Bulk Carriers's Interest Coverage

For the Marine Shipping subindustry, Star Bulk Carriers'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.


Star Bulk Carriers's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Star Bulk Carriers's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Star Bulk Carriers's Interest Coverage falls into.



Star Bulk Carriers 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.

Star Bulk Carriers'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, Star Bulk Carriers's Interest Expense was $-88 Mil. Its Operating Income was $239 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,008 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*238.803/-87.857
=2.72

Star Bulk Carriers's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Star Bulk Carriers's Interest Expense was $-26 Mil. Its Operating Income was $112 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,302 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*111.504/-25.982
=4.29

* 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.


Star Bulk Carriers  (NAS:SBLK) 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 .


Star Bulk Carriers Interest Coverage Related Terms

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


Star Bulk Carriers Business Description

Traded in Other Exchanges
Address
C/o Star Bulk Management Inc, 40 Agiou Konstantinou Street, Maroussi, Athens, GRC, 15124
Star Bulk Carriers Corp provides seaborne transportation solutions in the dry bulk sector. The company owns and operates dry bulk carrier vessels, which are used to transport bulk, such as iron ore, coal, grains, bauxite, fertilizers, and steel products. It owns a fleet of vessels that consists of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax, and Supramax. It generates revenues through the voyages it carries out.
Executives
Ramius Advisors Llc 10 percent owner 599 LEXINGTON AVENUE, 20TH FLOOR, NEW YORK NY 10022
Rcg Enterprise Ltd 10 percent owner 599 LEXINGTON AVENUE 20TH FLOOR, NEW YORK NY 10022
Rcg Carpathia Master Fund Ltd 10 percent owner C/O RAMIUS LLC, 599 LEXINGTON AVENUE, NEW YORK NY 10022
Rcg Baldwin Lp 10 percent owner C/O RAMIUS LLC, 599 LEXINGTON AVENUE 20TH FLOOR, NEW YORK NY 10022
Peter A Cohen 10 percent owner, other: See Explanation of Responses 40 WEST 57TH STREET, SUITE 2020, NEW YORK NY 10019
Thomas W Strauss 10 percent owner, other: See Explanation of Responses 599 LEXINGTON AVENUE, 20TH FLOOR, NEW YORK NY 10022
Ramius Capital Group Llc 10 percent owner 599 LEXINGTON AVENUE, 20TH FLOOR, NEW YORK NY 10022
C4s & Co Llc 10 percent owner, other: See Explanation of Responses RAMIUS LLC, 599 LEXINGTON AVENUE, NEW YORK NY 10022
Morgan B Stark 10 percent owner, other: See Explanation of Responses C/O RAMIUS LLC, 599 LEXINGTON AVENUE 20TH FLOOR, NEW YORK NY 10022
Jeffrey M Solomon 10 percent owner, other: See Explanation of Responses 599 LEXINGTON AVENUE 20TH FLOOR, NEW YORK NY 10022