IG Design Group (LSE:IGR) Interest Coverage : 10.76 (As of Sep. 2023)

View and export this data going back to 1995. Start your Free Trial

What is IG Design Group 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. IG Design Group's Operating Income for the six months ended in Sep. 2023 was £30.0 Mil. IG Design Group's Interest Expense for the six months ended in Sep. 2023 was £-2.8 Mil. IG Design Group's interest coverage for the quarter that ended in Sep. 2023 was 10.76. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for IG Design Group's Interest Coverage or its related term are showing as below:

LSE:IGR' s Interest Coverage Range Over the Past 10 Years
Min: 0.43 Med: 4.29 Max: 18.77
Current: 3.38

LSE:IGR's Interest Coverage is ranked worse than
69.3% of 759 companies
in the Retail - Cyclical industry
Industry Median: 7.81 vs LSE:IGR: 3.38

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

IG Design Group Interest Coverage Historical Data

The historical data trend for IG Design Group'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.

* Premium members only.

IG Design Group Interest Coverage Chart

IG Design Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

10.42

0.43

4.14

1.96

1.95

IG Design Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial															8.45	-	9.07	-	10.76

Competitive Comparison of IG Design Group's Interest Coverage

For the Specialty Retail subindustry, IG Design Group'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.

IG Design Group's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, IG Design Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where IG Design Group's Interest Coverage falls into.

IG Design Group 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.

IG Design Group's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, IG Design Group's Interest Expense was £-4.1 Mil. Its Operating Income was £8.0 Mil. And its Long-Term Debt & Capital Lease Obligation was £51.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	8.017	/	-4.121
	=	1.95

IG Design Group's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, IG Design Group's Interest Expense was £-2.8 Mil. Its Operating Income was £30.0 Mil. And its Long-Term Debt & Capital Lease Obligation was £43.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	29.975	/	-2.786
	=	10.76

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

IG Design Group (LSE:IGR) 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 .

IG Design Group Interest Coverage Related Terms

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

IG Design Group (LSE:IGR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » IG Design Group PLC (LSE:IGR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IGR.GB:UK

Address

Howard Way, Howard House, Interchange Park, Newport Pagnell, GBR, MK16 9PX

Website

https://www.thedesigngroup.com

IG Design Group PLC is a UK-based company that operates in a single segment of design, manufacture, and distribution of Celebrations, Craft and creative play, Stationery, Gifting, and 'Not-for-resale' consumable products. Its Celebrations products are greetings cards, gift wrap, Christmas crackers, gift bags, and partyware. Gifting items include food and non-food gifts, photo Frames and Albums, and Calendars. Its Craft product ranges include Ribbons and Trim, Sewing Patterns, Buttons, Needlecrafts, and Kids Craft lines. The not-For-resale category includes Paper Twist Handle Bags and Polaris. It operates in two geographical segments: DG Americas, which includes overseas operations; and DG International, which consists of the UK and associated Asian operations, Europe, and Australia.