M Dias Branco Industria e Comercio de Alimentos (BSP:MDIA3) Interest Coverage : 8.85 (As of Dec. 2023)

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What is M Dias Branco Industria e Comercio de Alimentos 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. M Dias Branco Industria e Comercio de Alimentos's Operating Income for the three months ended in Dec. 2023 was R$350 Mil. M Dias Branco Industria e Comercio de Alimentos's Interest Expense for the three months ended in Dec. 2023 was R$-40 Mil. M Dias Branco Industria e Comercio de Alimentos's interest coverage for the quarter that ended in Dec. 2023 was 8.85. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for M Dias Branco Industria e Comercio de Alimentos's Interest Coverage or its related term are showing as below:

BSP:MDIA3' s Interest Coverage Range Over the Past 10 Years
Min: 2.8 Med: 13.51 Max: 35.58
Current: 2.96

BSP:MDIA3's Interest Coverage is ranked worse than
74.85% of 1372 companies
in the Consumer Packaged Goods industry
Industry Median: 8.405 vs BSP:MDIA3: 2.96

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

M Dias Branco Industria e Comercio de Alimentos Interest Coverage Historical Data

The historical data trend for M Dias Branco Industria e Comercio de Alimentos'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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M Dias Branco Industria e Comercio de Alimentos Interest Coverage Chart

M Dias Branco Industria e Comercio de Alimentos Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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9.32

11.37

2.80

3.46

5.78

M Dias Branco Industria e Comercio de Alimentos 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															0.70	2.46	1.72	2.90	8.85

Competitive Comparison of M Dias Branco Industria e Comercio de Alimentos's Interest Coverage

For the Packaged Foods subindustry, M Dias Branco Industria e Comercio de Alimentos'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.

M Dias Branco Industria e Comercio de Alimentos's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, M Dias Branco Industria e Comercio de Alimentos's Interest Coverage distribution charts can be found below:

* The bar in red indicates where M Dias Branco Industria e Comercio de Alimentos's Interest Coverage falls into.

M Dias Branco Industria e Comercio de Alimentos 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.

M Dias Branco Industria e Comercio de Alimentos'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, M Dias Branco Industria e Comercio de Alimentos's Interest Expense was R$-184 Mil. Its Operating Income was R$1,065 Mil. And its Long-Term Debt & Capital Lease Obligation was R$1,678 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1065.273	/	-184.379
	=	5.78

M Dias Branco Industria e Comercio de Alimentos's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, M Dias Branco Industria e Comercio de Alimentos's Interest Expense was R$-40 Mil. Its Operating Income was R$350 Mil. And its Long-Term Debt & Capital Lease Obligation was R$1,678 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	350.016	/	-39.571
	=	8.85

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

M Dias Branco Industria e Comercio de Alimentos (BSP:MDIA3) 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 .

M Dias Branco Industria e Comercio de Alimentos Interest Coverage Related Terms

Thank you for viewing the detailed overview of M Dias Branco Industria e Comercio de Alimentos's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

M Dias Branco Industria e Comercio de Alimentos (BSP:MDIA3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » M Dias Branco SA Industria e Comercio de Alimentos (BSP:MDIA3) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rodovia BR 116, Sem Numero Km 18, Eusebio, CE, BRA, 61760-000

Website

https://www.mdiasbranco.com.br

M Dias Branco SA Industria e Comercio de Alimentos is a Brazilian company engaged in the industrialization, sale and distribution of food products derived from wheat, mainly cookies and crackers, pasta and wheat flour/bran and the manufacture, sale and distribution of vegetable shortenings and margarines, cakes, cake mixes, packaged toast and snacks. The Company's brands in the domestic market are Adria, Aldente, Basilar, Bonsabor, Estrela, Fortaleza, Finna, Fit Food, Frontera, Isabela, Jasmine, Pelagio, Pilar, Piraque, Predilleto, Richester, Salsito, Smart, Taste and Co, Treloso, Vitarella, and Zabet; and in the foreign market: Las Acacias.

M Dias Branco Industria e Comercio de Alimentos (BSP:MDIA3) Headlines

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