Franchise Group (FRA:3HC) Interest Coverage : 0.27 (As of Jun. 2023)

Franchise Group Interest Coverage Chart

Franchise Group Annual Data
	Trend	Apr13	Apr14	Apr15	Apr16	Apr17	Apr18	Apr19	Dec20	Dec21	Dec22
Interest Coverage		Get a 7-Day Free Trial					3.94	N/A	0.54	1.70	0.86

Franchise Group Quarterly Data
	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Interest Coverage	Get a 7-Day Free Trial															0.87	0.72	0.41	0.56	0.27

Competitive Comparison of Franchise Group's Interest Coverage

For the Specialty Retail subindustry, Franchise 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.

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

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

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

Franchise 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Franchise Group's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Franchise Group's Interest Expense was €-321 Mil. Its Operating Income was €275 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,079 Mil.

Franchise Group's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, Franchise Group's Interest Expense was €-77 Mil. Its Operating Income was €21 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,124 Mil.

* 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.

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

Franchise Group  (FRA:3HC) 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 .

Franchise Group Interest Coverage Related Terms

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Franchise Group (FRA:3HC) Business Description