Greenvolt - Energias Renovaveis (XLIS:GVOLT) Interest Coverage : 0.03 (As of Dec. 2023)

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What is Greenvolt - Energias Renovaveis 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. Greenvolt - Energias Renovaveis's Operating Income for the three months ended in Dec. 2023 was €0.5 Mil. Greenvolt - Energias Renovaveis's Interest Expense for the three months ended in Dec. 2023 was €-15.1 Mil. Greenvolt - Energias Renovaveis's interest coverage for the quarter that ended in Dec. 2023 was 0.03. 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. Greenvolt - Energias Renovaveis SAs 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 Greenvolt - Energias Renovaveis's Interest Coverage or its related term are showing as below:

XLIS:GVOLT' s Interest Coverage Range Over the Past 10 Years
Min: 0.37 Med: 5.45 Max: 19.86
Current: 0.37

XLIS:GVOLT's Interest Coverage is ranked worse than
94.83% of 329 companies
in the Utilities - Independent Power Producers industry
Industry Median: 3.13 vs XLIS:GVOLT: 0.37

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

Greenvolt - Energias Renovaveis Interest Coverage Historical Data

The historical data trend for Greenvolt - Energias Renovaveis'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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Greenvolt - Energias Renovaveis Interest Coverage Chart

Greenvolt - Energias Renovaveis Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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6.45

12.06

4.44

2.21

0.37

Greenvolt - Energias Renovaveis Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial											0.52	0.01	-	-	0.03

Competitive Comparison of Greenvolt - Energias Renovaveis's Interest Coverage

For the Utilities - Renewable subindustry, Greenvolt - Energias Renovaveis'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.

Greenvolt - Energias Renovaveis's Interest Coverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Greenvolt - Energias Renovaveis's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Greenvolt - Energias Renovaveis's Interest Coverage falls into.

Greenvolt - Energias Renovaveis 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.

Greenvolt - Energias Renovaveis'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, Greenvolt - Energias Renovaveis's Interest Expense was €-53.2 Mil. Its Operating Income was €19.7 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,007.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	19.728	/	-53.243
	=	0.37

Greenvolt - Energias Renovaveis's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Greenvolt - Energias Renovaveis's Interest Expense was €-15.1 Mil. Its Operating Income was €0.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,007.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	0.477	/	-15.069
	=	0.03

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

Greenvolt - Energias Renovaveis (XLIS:GVOLT) 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 .

Greenvolt - Energias Renovaveis Interest Coverage Related Terms

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

Greenvolt - Energias Renovaveis (XLIS:GVOLT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Greenvolt - Energias Renovaveis SA (XLIS:GVOLT) » Definitions » Interest Coverage

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Traded in Other Exchanges

000:Germany

Address

Rua Manuel Pinto de Azevedo 818, Porto, PRT, PT-4100-320

Website

https://www.greenvolt.pt

Greenvolt - Energias Renovaveis SA is specialized in the production of electricity from renewable energy sources. It has three operating segments. Biomass & Structure has five energy production plants through forest biomass in Portugal, the costs of the corporate structure of Greenvolt, and the plant in Tilbury. The development of Solar & wind energy includes the activities of development, construction, & exploration of photovoltaic & wind energy, with the subsidiaries Greenvolt Power & Sustainable Energy One being the main contributors to the segment. Distributed generation includes the contributions from subsidiaries Greenvolt Next Portugal, Greenvolt Next Portugal II Invest, Perfecta Energía, Greenvolt Comunidades, & Univergy. The key revenue is from the biomass & structure segment.

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