Olympic Steel (Olympic Steel) Interest Coverage : 3.66 (As of Dec. 2023)

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What is Olympic Steel 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. Olympic Steel's Operating Income for the three months ended in Dec. 2023 was $13 Mil. Olympic Steel's Interest Expense for the three months ended in Dec. 2023 was $-4 Mil. Olympic Steel's interest coverage for the quarter that ended in Dec. 2023 was 3.66. The higher the ratio, the stronger the company's financial strength is.

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

ZEUS' s Interest Coverage Range Over the Past 10 Years
Min: 0.08 Med: 3.19 Max: 22.6
Current: 4.85

ZEUS's Interest Coverage is ranked worse than
56.87% of 466 companies
in the Steel industry
Industry Median: 6.1 vs ZEUS: 4.85

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

Olympic Steel Interest Coverage Historical Data

The historical data trend for Olympic Steel'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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Olympic Steel Interest Coverage Chart

Olympic Steel Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.47

0.08

22.60

13.27

4.85

Olympic Steel 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															2.74	4.20	6.13	5.28	3.66

Competitive Comparison of Olympic Steel's Interest Coverage

For the Steel subindustry, Olympic Steel'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.

Olympic Steel's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Olympic Steel's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Olympic Steel's Interest Coverage falls into.

Olympic Steel 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.

Olympic Steel'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, Olympic Steel's Interest Expense was $-16 Mil. Its Operating Income was $78 Mil. And its Long-Term Debt & Capital Lease Obligation was $217 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	77.671	/	-16.006
	=	4.85

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

Here, for the three months ended in Dec. 2023, Olympic Steel's Interest Expense was $-4 Mil. Its Operating Income was $13 Mil. And its Long-Term Debt & Capital Lease Obligation was $217 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	13.291	/	-3.627
	=	3.66

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

Olympic Steel (NAS:ZEUS) 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 .

Olympic Steel Interest Coverage Related Terms

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

Olympic Steel (Olympic Steel) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Olympic Steel Inc (NAS:ZEUS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

OYS:Germany OYS:Germany

Address

22901 Millcreek Boulevard, Suite 650, Highland Hills, OH, USA, 44122

Website

https://www.olysteel.com

Olympic Steel Inc provides metals processing and distribution services in the United States. The company operates in three reportable segments; specialty metals flat products, carbon flat products, and tubular and pipe products. It specializes in the processing and distribution of large volumes of carbon, aluminum, and stainless steel flat-rolled sheet, coils, plates, bars, and fabricated parts. The group serves various industries such as industrial machinery and equipment manufacturers, automobile manufacturers and suppliers, and transportation equipment manufacturers. The company generates majority of the revenue from carbon flat products.

Executives

Dirk A Kempthorne	director	1735 MARKET STREET, PHILADELPHIA PA 19103
Michael D Siegal	director, 10 percent owner, officer: Chairman of the Board and CEO	5080 RICHMOND ROAD, CLEVELAND OH 44146-1392
David A Wolfort	director, officer: President and COO
Richard T Marabito	officer: Chief Financial Officer	5096 RICHMOND ROAD, BEDFORD HEIGHTS OH 44146
Andrew S Greiff	officer: EVP and COO	22901 MILLCREEK BLVD., SUITE 650, HIGHLAND HILLS OH 44122
Richard P Stovsky	director	350 CAMINO DE LA REINA, SUITE 100, SAN DIEGO CA 92108
Arthur F Anton	director	29500 SOLON ROAD, SOLON OH 44139
Richard A Manson	officer: Vice President and Treasurer	5096 RICHMOND ROAD, BEDFORD HEIGHTS OH 44146
Lisa K Christen	officer: See Remarks	C/O/ OLYMPIC STEEL, INC., 22901 MILLCREED BLVD., SUITE 650, HIGHLAND HILLS OH 44122
Vanessa Whiting	director	C/O OLYMPIC STEEL, INC., 22901 MILLCREEK BLVD., SUITE 650, HIGHLAND HILLS OH 44122
Della Ratta Ralph M Jr	director	1690 CHAGRIN RIVER ROAD, GATES MILLS OH 44040
Idalene Fay Kesner	director	101 OAKLEY STREET, EVANSVILLE IN 47710
Michael G Rippey	director	C/O OLYMPIC STEEL, INC., 22901 MILLCREEK BLVD., HIGHLAND HILLS OH 44122
Howard Goldstein	director	5096 RICHMOND RD, BEDFORD HEIGHTS OH 44146
Mcneeley Donald R. Jr.	director, officer: Subsidiary Officer	5096 RICHMOND ROAD, BEDFORD HEIGHTS OH 44146