Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUSI1) Interest Coverage : 249.53 (As of Dec. 2018)

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What is Union de Cervecerias Peruanas Backus & Johnston 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. Union de Cervecerias Peruanas Backus & Johnston's Operating Income for the six months ended in Dec. 2018 was S/.2,542 Mil. Union de Cervecerias Peruanas Backus & Johnston's Interest Expense for the six months ended in Dec. 2018 was S/.-10 Mil. Union de Cervecerias Peruanas Backus & Johnston's interest coverage for the quarter that ended in Dec. 2018 was 249.53. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage or its related term are showing as below:

LIM:BACKUSI1's Interest Coverage is not ranked ^*
in the Beverages - Alcoholic industry.
Industry Median: 8.7
* Ranked among companies with meaningful Interest Coverage only.

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

Union de Cervecerias Peruanas Backus & Johnston Interest Coverage Historical Data

The historical data trend for Union de Cervecerias Peruanas Backus & Johnston'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.

* Premium members only.

Union de Cervecerias Peruanas Backus & Johnston Interest Coverage Chart

Union de Cervecerias Peruanas Backus & Johnston Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Interest Coverage

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35.93

44.05

40.12

123.47

249.53

Union de Cervecerias Peruanas Backus & Johnston Semi-Annual Data
	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18
Interest Coverage	Get a 7-Day Free Trial									35.93	44.05	40.12	123.47	249.53

Competitive Comparison of Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage

For the Beverages - Brewers subindustry, Union de Cervecerias Peruanas Backus & Johnston'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.

Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage falls into.

Union de Cervecerias Peruanas Backus & Johnston 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.

Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Union de Cervecerias Peruanas Backus & Johnston's Interest Expense was S/.-10 Mil. Its Operating Income was S/.2,542 Mil. And its Long-Term Debt & Capital Lease Obligation was S/.71 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2018 )	/	Interest Expense (A: Dec. 2018 )
	=	-1	*	2542.259	/	-10.188
	=	249.53

Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the six months ended in Dec. 2018, Union de Cervecerias Peruanas Backus & Johnston's Interest Expense was S/.-10 Mil. Its Operating Income was S/.2,542 Mil. And its Long-Term Debt & Capital Lease Obligation was S/.71 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2018 )	/	Interest Expense (Q: Dec. 2018 )
	=	-1	*	2542.259	/	-10.188
	=	249.53

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

Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUSI1) 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 .

Union de Cervecerias Peruanas Backus & Johnston Interest Coverage Related Terms

Thank you for viewing the detailed overview of Union de Cervecerias Peruanas Backus & Johnston's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUSI1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Union de Cervecerias Peruanas Backus & Johnston SA (LIM:BACKUSI1) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Av. Nicolas Ayllon Number 3986, Ate, Lima, PER

Website

http://www.backus.pe

Union de Cervecerias Peruanas Backus & Johnston SA produces, sells and distributes malt liquors and malt soft drinks and carbonated water. The company operates domestically. It provides products under the Crystal, Pilsen Callao, Cusquena, Backus Ice, Pilsen Trujillo, Arequipa, San Juan, Real Fiesta, Abraxas, Miller Genuine Draft, Peroni Nastro Azzurro, Grolsch, Saint Matthew, Guarana Backus, Maltin Power, Viva Backus, and Water Tonic Backus brands.

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