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. Loop Industries's
Operating Income
for the
three
months ended in Feb. 2024 was €-4.94 Mil. Loop Industries's Interest Expense for the
three
months ended in Feb. 2024 was €-0.02 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Loop Industries's Interest Coverage or its related term are showing as below:
FRA:3L9's Interest Coverage is not ranked *
in the Chemicals industry.
Industry Median: 9.55 * Ranked among companies with meaningful Interest Coverage only.
The historical data trend for Loop Industries'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.
Competitive Comparison of Loop Industries's Interest Coverage
For the Specialty Chemicals subindustry, Loop Industries'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.
Loop Industries's Interest Coverage Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Loop Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Loop Industries's Interest Coverage falls into.
Loop Industries 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:
Loop Industries did not have earnings to cover the interest expense.
* 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.
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 .
Loop Industries Interest Coverage Related Terms
Thank you for viewing the detailed overview of Loop Industries's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Loop Industries Inc is a technology and licensing company whose mission is to accelerate the world's shift toward sustainable plastic and away from dependence on fossil fuels. The company owns patented and proprietary technology that depolymerizes no and low value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpet and polyester textile of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). Its monomers are filtered, purified and repolymerized to create virgin-quality Loop branded PET plastic resin and polyester fiber suitable for use in food-grade packaging to be sold to consumer goods companies to help them meet their sustainability objectives.
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