Aegis Brands (TSX:AEG) Interest Coverage : 0.39 (As of Dec. 2023)

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What is Aegis Brands 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. Aegis Brands's Operating Income for the three months ended in Dec. 2023 was C$0.29 Mil. Aegis Brands's Interest Expense for the three months ended in Dec. 2023 was C$-0.76 Mil. Aegis Brands's interest coverage for the quarter that ended in Dec. 2023 was 0.39. 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. Aegis Brands Inc.s 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 Aegis Brands's Interest Coverage or its related term are showing as below:

TSX:AEG' s Interest Coverage Range Over the Past 10 Years
Min: 0.59 Med: 2.32 Max: No Debt
Current: 0.59

TSX:AEG's Interest Coverage is ranked worse than
93.46% of 260 companies
in the Restaurants industry
Industry Median: 6.76 vs TSX:AEG: 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.

Aegis Brands Interest Coverage Historical Data

The historical data trend for Aegis Brands'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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Aegis Brands Interest Coverage Chart

Aegis Brands Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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N/A

0.59

Aegis Brands 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															-	-	0.71	1.43	0.39

Competitive Comparison of Aegis Brands's Interest Coverage

For the Restaurants subindustry, Aegis Brands'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.

Aegis Brands's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Aegis Brands's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Aegis Brands's Interest Coverage falls into.

Aegis Brands 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.

Aegis Brands'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, Aegis Brands's Interest Expense was C$-3.67 Mil. Its Operating Income was C$2.15 Mil. And its Long-Term Debt & Capital Lease Obligation was C$31.61 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2.147	/	-3.67
	=	0.59

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

Here, for the three months ended in Dec. 2023, Aegis Brands's Interest Expense was C$-0.76 Mil. Its Operating Income was C$0.29 Mil. And its Long-Term Debt & Capital Lease Obligation was C$31.61 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	0.292	/	-0.757
	=	0.39

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

Aegis Brands (TSX:AEG) 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 .

Aegis Brands Interest Coverage Related Terms

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

Aegis Brands (TSX:AEG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Aegis Brands Inc. (TSX:AEG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SCUPF:USA

Address

2040 Yonge Street, Suite 200B, Toronto, ON, CAN, M4S 1Z9

Website

https://www.aegisbrands.ca

Aegis Brands Inc. is a consolidator of brands in the food and beverage space with the view to allow entrepreneurial spirit while providing shared services that encourage unlimited growth.. The company operates the Second Cup Coffee Co TM specialty coffee business as part of a portfolio of brands that also includes its retail brands Bridgehead Coffee and Hemisphere Cannabis CoTM. The company owns the trademarks, trade names, operating procedures and systems and other intellectual property used in connection with the operation of these brands in Canada. Its revenues comprise royalties from franchised cafes, the sale of goods from company-operated cafes and retail cannabis dispensaries, the sale of goods through retail and other ancillary channels, and other service fees.