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SHYF (The Shyft Group) Interest Coverage : 2.23 (As of Sep. 2024)


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What is The Shyft 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. The Shyft Group's Operating Income for the three months ended in Sep. 2024 was $5.3 Mil. The Shyft Group's Interest Expense for the three months ended in Sep. 2024 was $-2.4 Mil. The Shyft Group's interest coverage for the quarter that ended in Sep. 2024 was 2.23. The higher the ratio, the stronger the company's financial strength is.

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


SHYF's Interest Coverage is not ranked *
in the Farm & Heavy Construction Machinery industry.
Industry Median: 9.91
* Ranked among companies with meaningful Interest Coverage only.

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


The Shyft Group Interest Coverage Historical Data

The historical data trend for The Shyft 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.

* Premium members only.

The Shyft Group Interest Coverage Chart

The Shyft Group 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 25.89 37.78 203.02 16.77 1.03

The Shyft Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 2.62 - - 2.13 2.23

Competitive Comparison of The Shyft Group's Interest Coverage

For the Farm & Heavy Construction Machinery subindustry, The Shyft 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.


The Shyft Group's Interest Coverage Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, The Shyft Group's Interest Coverage distribution charts can be found below:

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



The Shyft 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.

The Shyft 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, The Shyft Group's Interest Expense was $-6.5 Mil. Its Operating Income was $6.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $86.9 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*6.753/-6.527
=1.03

The Shyft Group's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, The Shyft Group's Interest Expense was $-2.4 Mil. Its Operating Income was $5.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $142.6 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*5.329/-2.392
=2.23

* 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.


The Shyft Group  (NAS:SHYF) 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 .


The Shyft Group Interest Coverage Related Terms

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


The Shyft Group Business Description

Traded in Other Exchanges
Address
41280 Bridge Street, Novi, MI, USA, 48375
The Shyft Group Inc is engaged in specialty vehicle manufacturing and assembly for commercial vehicles (including last-mile delivery, specialty service, and vocation-specific upfit segments) and recreational vehicle industries. Its products include walk-in vans, truck bodies, cargo vans, and pick-up truck upfits used in e-commerce/parcel delivery, upfit equipment used in the mobile retail and utility trades, as well as luxury Class A diesel motorhome custom chassis and contract manufacturing and assembly services. It also supplies replacement parts and offers repair, maintenance, field service, and refurbishment services for the vehicles that the company manufactures.
Executives
John Albert Dunn officer: President Fleet Vehicles & Svc C/O THE SHYFT GROUP, 41280 BRIDGE STREET, NOVI MI 48375
Joshua A Sherbin officer: Chief Legal Officer 38505 WOODWARD AVENUE, SUITE 200, BLOOMFIELD HILLS MI 48304
Jonathan C Douyard officer: Chief Financial Officer C/O SPARTAN MOTORS, INC., 41280 BRIDGE STREET, NOVI MI 48375
Michael Dinkins director 6166 NW 85TH WAY, PARKLAND FL 33067
Terri Pizzuto director 3050 HIGHLAND PARKWAY, STE 100, DOWNERS GROVA IL 60515
Pamela L Kermisch director C/O THE SHYFT GROUP, 41280 BRIDGE STREET, NOVI MI 48375
Mark B. Rourke director 3101 PACKERLAND DRIVE, GREEN BAY WI 54313
James A. Sharman director C/O SPARTAN MOTORS, INC., 1541 REYNOLDS ROAD, CHARLOTTE MI 48813
Jacob Owen Farmer officer: President, Specialty Vehicles C/O THE SHYFT GROUP, 41280 BRIDGE STREET, NOVI MI 48375
Stephen K Guillaume officer: President, Specialty Chassis C/O SPARTAN MOTORS, INC., 1541 REYNOLDS ROAD, CHARLOTTE MI 48813
Hindman Colin E officer: Chief Human Resources Officer 3130 STONEY CREEK ROAD, OAKLAND MI 48363
Scott Matthew Ocholik officer: Chief Accounting Officer C/O THE SHYFT GROUP, 41280 BRIDGE STREET, NOVI MI 48375
Carl A. Esposito director 21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033
Thomas R Clevinger director C/O SPARTAN MOTORS, INC., 1541 REYNOLDS ROAD, CHARLOTTE MI 48813
Daryl M Adams officer: Chief Operating Officer C/O SPARTAN MOTORS, INC., 1541 REYNOLDS ROAD, CHARLOTTE MI 48813