CT Automotive Group (LSE:CTA) Interest Coverage : 4.31 (As of Dec. 2023)

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What is CT Automotive Group 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. CT Automotive Group's Operating Income for the six months ended in Dec. 2023 was £4.8 Mil. CT Automotive Group's Interest Expense for the six months ended in Dec. 2023 was £-1.1 Mil. CT Automotive Group's interest coverage for the quarter that ended in Dec. 2023 was 4.31. The higher the ratio, the stronger the company's financial strength is.

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

LSE:CTA's Interest Coverage is not ranked ^*
in the Vehicles & Parts industry.
Industry Median: 7.73
* 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.

CT Automotive Group Interest Coverage Historical Data

The historical data trend for CT Automotive Group'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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CT Automotive Group Interest Coverage Chart

CT Automotive Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.21

3.34

CT Automotive Group Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial					-	-	-	2.15	4.31

Competitive Comparison of CT Automotive Group's Interest Coverage

For the Auto Parts subindustry, CT Automotive 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.

CT Automotive Group's Interest Coverage Distribution in the Vehicles & Parts Industry

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

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

CT Automotive 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

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.

CT Automotive Group'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, CT Automotive Group's Interest Expense was £-2.0 Mil. Its Operating Income was £6.7 Mil. And its Long-Term Debt & Capital Lease Obligation was £4.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	6.693	/	-2.003
	=	3.34

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

Here, for the six months ended in Dec. 2023, CT Automotive Group's Interest Expense was £-1.1 Mil. Its Operating Income was £4.8 Mil. And its Long-Term Debt & Capital Lease Obligation was £4.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	4.763	/	-1.104
	=	4.31

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

CT Automotive Group (LSE:CTA) 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 .

CT Automotive Group Interest Coverage Related Terms

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CT Automotive Group (LSE:CTA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » CT Automotive Group PLC (LSE:CTA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

X7X:Germany

Address

1000 Lakeside North Harbour, Western Road, Portsmouth, Hampshire, GBR, PO6 3EN

Website

https://www.ct-automotive.net

CT Automotive Group PLC designs develops and supplies interior components for the automotive industry. Customers include a few original equipment manufacturers and Tier One suppliers to OEMs. The group has an international manufacturing footprint with the majority of the production across three sites in China with additional sites in the UK, Czech Republic, and Turkey, as well as an engineering design office in India.