Russel Metals (Russel Metals) Interest Coverage : 8.01 (As of Dec. 2023)

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What is Russel Metals 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. Russel Metals's Operating Income for the three months ended in Dec. 2023 was $47 Mil. Russel Metals's Interest Expense for the three months ended in Dec. 2023 was $-6 Mil. Russel Metals's interest coverage for the quarter that ended in Dec. 2023 was 8.01. The higher the ratio, the stronger the company's financial strength is.

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

RUSMF' s Interest Coverage Range Over the Past 10 Years
Min: 0.94 Med: 7.37 Max: 22.9
Current: 11.39

RUSMF's Interest Coverage is ranked better than
55.73% of 131 companies
in the Industrial Distribution industry
Industry Median: 8.21 vs RUSMF: 11.39

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

Russel Metals Interest Coverage Historical Data

The historical data trend for Russel Metals'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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Russel Metals Interest Coverage Chart

Russel Metals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.53

2.49

22.90

17.49

11.39

Russel Metals 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															9.04	13.22	15.17	9.50	8.01

Competitive Comparison of Russel Metals's Interest Coverage

For the Industrial Distribution subindustry, Russel Metals'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.

Russel Metals's Interest Coverage Distribution in the Industrial Distribution Industry

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

* The bar in red indicates where Russel Metals's Interest Coverage falls into.

Russel Metals 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.

Russel Metals'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, Russel Metals's Interest Expense was $-21 Mil. Its Operating Income was $244 Mil. And its Long-Term Debt & Capital Lease Obligation was $303 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	244.41	/	-21.467
	=	11.39

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

Here, for the three months ended in Dec. 2023, Russel Metals's Interest Expense was $-6 Mil. Its Operating Income was $47 Mil. And its Long-Term Debt & Capital Lease Obligation was $303 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	46.586	/	-5.814
	=	8.01

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

Russel Metals (OTCPK:RUSMF) 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 .

Russel Metals Interest Coverage Related Terms

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

Russel Metals (Russel Metals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Russel Metals Inc (OTCPK:RUSMF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RMZ:Germany RUS:Canada

Address

6600 Financial Drive, Mississauga, ON, CAN, L5N 7J6

Website

https://www.russelmetals.com

Russel Metals Inc is a Canada-based metal distribution company. The company conducts business primarily through three metals distribution segments: metals service centers; energy products; and steel distributors. The metal service centers provide processing and distribution services to a broad base of end-users. The energy products segment distributes oil country tubular goods, line pipe, tubes, valves, and fittings, primarily to the energy industry in Western Canada and the U.S. The steel distributors segment acts as master distributors selling steel in large volumes to other steel service centers and equipment manufacturers mainly on an "as is" basis. The company generates all of its revenue from the North American market.