DXP Enterprises (DXP Enterprises) Interest Coverage : 1.76 (As of Dec. 2023)

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What is DXP Enterprises 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. DXP Enterprises's Operating Income for the three months ended in Dec. 2023 was $30 Mil. DXP Enterprises's Interest Expense for the three months ended in Dec. 2023 was $-17 Mil. DXP Enterprises's interest coverage for the quarter that ended in Dec. 2023 was 1.76. The higher the ratio, the stronger the company's financial strength is.

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

DXPE' s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 2.99 Max: 8.2
Current: 2.61

DXPE's Interest Coverage is ranked worse than
82.31% of 130 companies
in the Industrial Distribution industry
Industry Median: 8.625 vs DXPE: 2.61

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

DXP Enterprises Interest Coverage Historical Data

The historical data trend for DXP Enterprises'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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DXP Enterprises Interest Coverage Chart

DXP Enterprises Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.46

1.57

1.89

3.36

2.61

DXP Enterprises 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															2.06	3.07	3.16	2.83	1.76

Competitive Comparison of DXP Enterprises's Interest Coverage

For the Industrial Distribution subindustry, DXP Enterprises'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.

DXP Enterprises's Interest Coverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, DXP Enterprises's Interest Coverage distribution charts can be found below:

* The bar in red indicates where DXP Enterprises's Interest Coverage falls into.

DXP Enterprises 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.

DXP Enterprises'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, DXP Enterprises's Interest Expense was $-53 Mil. Its Operating Income was $139 Mil. And its Long-Term Debt & Capital Lease Obligation was $555 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	138.722	/	-53.146
	=	2.61

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

Here, for the three months ended in Dec. 2023, DXP Enterprises's Interest Expense was $-17 Mil. Its Operating Income was $30 Mil. And its Long-Term Debt & Capital Lease Obligation was $555 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	29.987	/	-17.078
	=	1.76

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

DXP Enterprises (NAS:DXPE) 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 .

DXP Enterprises Interest Coverage Related Terms

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

DXP Enterprises (DXP Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » DXP Enterprises Inc (NAS:DXPE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DX7:Germany

Address

5301 Hollister, Houston, TX, USA, 77040

Website

https://www.dxpe.com

DXP Enterprises Inc is a distributor of products and services to industrial customers in the United States, Canada, Mexico, and Dubai. The company's reportable segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. It generates maximum revenue from the Service Centers segment. The company offers pumping solutions, supply chain services and maintenance, repair, operating and production services for rotating equipment, bearings and power transmissions, industrial supplies and safety products. DXP Enterprises serves the oil and gas, general manufacturing, chemical, reseller, transportation, fabrication and construction, food and beverage, aerospace mining, agriculture, power, and refining industries.

Executives

Paz Maestas	officer: CMO & CTO	5301 HOLLISTER ST, HOUSTON TX 77040
David Molero Santos	officer: CHIEF ACCOUNTING OFFICER	5301 HOLLISTER ST, HOUSTON TX 77040
Todd Hamlin	officer: Sr. Vice President	7272 PINEMONT DRIVE, HOUSTON TX 77040
David R Little	director, 10 percent owner, officer: Chairman & CEO	7272 PINEMONT DRIVE, HOUSTON TX 77040
Yee Kent Nee Hung	officer: Sr. Vice President	7272 PINEMONT DRIVE, HOUSTON TX 77040
David C Vinson	officer: Sr, V.P. Operations
Nicholas Little	officer: CHIEF OPERATING OFFICER	5301 HOLLISTER ST, HOUSTON TX 77040
Christopher T Gregory	officer: Sr. Vice President	7272 PINEMONT DR, HOUSTON TX 77040
Karen Hoffman	director	5301 HOLLISTER ST, HOUSTON TX 77040
Gene Padgett	officer: SVP/Chief Accounting Officer	VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154
Joseph R Mannes	director	4016 MCFARLIN BLVD, DALLAS TX 75205
Timothy P Halter	director	174 FM 1830, ARGYLE TX 76226
David Patton	director	7272 PINEMONT DR, HOUSTON TX 77040
Cletus Davis	director
John Jay Jeffery	officer: Sr. V.P.	7272 PINEMONT DRIVE, HOUSTON TX 77040