Lojas Quero-Quero (BSP:LJQQ3) Interest Coverage : 3.60 (As of Mar. 2024)

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What is Lojas Quero-Quero 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. Lojas Quero-Quero's Operating Income for the three months ended in Mar. 2024 was R$98 Mil. Lojas Quero-Quero's Interest Expense for the three months ended in Mar. 2024 was R$-27 Mil. Lojas Quero-Quero's interest coverage for the quarter that ended in Mar. 2024 was 3.60. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Lojas Quero-Quero's Interest Coverage or its related term are showing as below:

BSP:LJQQ3' s Interest Coverage Range Over the Past 10 Years
Min: 0.99 Med: 2.07 Max: 3.72
Current: 2.25

BSP:LJQQ3's Interest Coverage is ranked worse than
77.63% of 760 companies
in the Retail - Cyclical industry
Industry Median: 7.585 vs BSP:LJQQ3: 2.25

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

Lojas Quero-Quero Interest Coverage Historical Data

The historical data trend for Lojas Quero-Quero'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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Lojas Quero-Quero Interest Coverage Chart

Lojas Quero-Quero Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.38

2.07

3.38

0.99

1.27

Lojas Quero-Quero Quarterly Data
	Mar19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															-	0.86	0.73	3.95	3.60

Competitive Comparison of Lojas Quero-Quero's Interest Coverage

For the Specialty Retail subindustry, Lojas Quero-Quero'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.

Lojas Quero-Quero's Interest Coverage Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Lojas Quero-Quero's Interest Coverage falls into.

Lojas Quero-Quero 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.

Lojas Quero-Quero'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, Lojas Quero-Quero's Interest Expense was R$-105 Mil. Its Operating Income was R$134 Mil. And its Long-Term Debt & Capital Lease Obligation was R$842 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	133.68	/	-104.861
	=	1.27

Lojas Quero-Quero's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Lojas Quero-Quero's Interest Expense was R$-27 Mil. Its Operating Income was R$98 Mil. And its Long-Term Debt & Capital Lease Obligation was R$862 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	98.02	/	-27.241
	=	3.60

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

Lojas Quero-Quero (BSP:LJQQ3) 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 .

Lojas Quero-Quero Interest Coverage Related Terms

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

Lojas Quero-Quero (BSP:LJQQ3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Lojas Quero-Quero SA (BSP:LJQQ3) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Avenida General Flores da Cunha, 1943, Vila Cachoeirinha, Cachoeirinha, RS, BRA, 94910-003

Website

https://www.queroquero.com.br

Lojas Quero-Quero SA is engaged providing integrated solutions to customers, with a comprehensive portfolio of construction materials, home appliances and furniture, in order to meet their needs in the household goods and construction segment. It currently has stores distributed in the states of Rio Grande do Sul, Santa Cataria, Parana, Mato Grosso do Sul and Sao Paulo, in addition to three distribution centers. The company has one operating segment with consists of revenues obtained from retail activities, financial services and credit cards on a segregated basis.

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