Holley (Holley) Interest Coverage : 1.03 (As of Dec. 2023)

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What is Holley 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. Holley's Operating Income for the three months ended in Dec. 2023 was $19.3 Mil. Holley's Interest Expense for the three months ended in Dec. 2023 was $-18.8 Mil. Holley's interest coverage for the quarter that ended in Dec. 2023 was 1.03. The higher the ratio, the stronger the company's financial strength is.

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

HLLY' s Interest Coverage Range Over the Past 10 Years
Min: 1.09 Med: 1.59 Max: 3.25
Current: 1.59

HLLY's Interest Coverage is ranked worse than
88.04% of 1037 companies
in the Vehicles & Parts industry
Industry Median: 7.7 vs HLLY: 1.59

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

Holley Interest Coverage Historical Data

The historical data trend for Holley'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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Holley Interest Coverage Chart

Holley Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.09

2.31

3.25

1.43

1.59

Holley Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial										-	1.49	3.06	1.44	1.03

Competitive Comparison of Holley's Interest Coverage

For the Auto Parts subindustry, Holley'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.

Holley's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Holley's Interest Coverage distribution charts can be found below:

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

Holley 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.

Holley'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, Holley's Interest Expense was $-60.7 Mil. Its Operating Income was $96.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $576.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	96.679	/	-60.746
	=	1.59

Holley's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Holley's Interest Expense was $-18.8 Mil. Its Operating Income was $19.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $576.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	19.325	/	-18.837
	=	1.03

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

Holley (NYSE:HLLY) 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 .

Holley Interest Coverage Related Terms

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

Holley (Holley) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Holley Inc (NYSE:HLLY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

82Z:Germany

Address

1801 Russellville Road, Bowling Green, KY, USA, 42101

Website

https://www.holley.com

Holley Inc is a designer, marketer, and manufacturer of high-performance automotive aftermarket products, featuring a portfolio of iconic brands serving the car and truck industry. It offers a diversified line of performance automotive products including fuel injection systems, tuners, exhaust products, carburetors, safety equipment and various other performance automotive products. The company's brands include Holley, APR, MSD and Flowmaster, among others. It derives revenue from the U.S. and Italy, of which prime revenue is derived from the U.S.

Executives

Matthew Stevenson	director, officer: President and CEO	150 PEABODY PLACE, M.S. LEGL-0008, MEMPHIS TN 38103
Ginger M Jones	director	55 JEWELERS PARK DRIVE, NEENAH WI 54956
James D. Coady	director, 10 percent owner	C/O SENTINEL CAPITAL PARTNERS, L.L.C., 330 MADISON AVENUE, 27TH FLOOR, NEW YORK CITY NY 10017
Owen Basham	director, 10 percent owner	C/O SENTINEL CAPITAL PARTNERS, L.L.C., 330 MADISON AVENUE, 27TH FLOOR, NEW YORK NY 10017
David S Lobel	director, 10 percent owner	C/O SENTINEL CAPITAL PARTNERS II, 777 THIRD AVE. 32ND FL, NEW YORK NY 10017
Midocean Partners V, L.p.	10 percent owner	C/O MIDOCEAN PARTNERS, 320 PARK AVENUE, SUITE 1600, NEW YORK NY 10022
Graham Clempson	director, officer: President and Director	C/O MIDOCEAN PARTNERS, 245 PARK AVENUE, 38TH FLOOR, NEW YORK NY 10167
Jesse Weaver	officer: Chief Financial Officer	1801 RUSSELLVILLE ROAD, BOWLING GREEN KY 42101
Brian Appelgate	officer: Interm Chief Operating Officer	1801 RUSSELLVILLE ROAD, BOWLING GREEN KY 42101
Dominic Bardos	officer: Chief Financial Officer	1801 RUSSELLVILLE RD, BOWLING GREEN KY 42101
Thomas W Tomlinson	director, officer: Chief Executive Officer	1801 RUSSELLVILLE RD, BOWLING GREEN KY 42101
Anita Sehgal	director	817 MAXWELL AVENUE, EVANSVILLE IN 47711
Carly Kennedy	officer: EVP & General Counsel	1801 RUSSELLVILLE ROAD, BOWLING GREEN KY 42101
Matthew E Rubel	director	3231 SE SIXTH AVENUE, TOPEKA KS 66607
Gina L Bianchini	director	312 WALNUT STREET, SUITE 1800, CINCINNATI OH 45202