Wickes Group (LSE:WIX) Interest Coverage : 1.44 (As of Dec. 2023)

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What is Wickes 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. Wickes Group's Operating Income for the six months ended in Dec. 2023 was £21 Mil. Wickes Group's Interest Expense for the six months ended in Dec. 2023 was £-15 Mil. Wickes Group's interest coverage for the quarter that ended in Dec. 2023 was 1.44. The higher the ratio, the stronger the company's financial strength is.

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

LSE:WIX' s Interest Coverage Range Over the Past 10 Years
Min: 1.64 Med: 2.28 Max: 3.08
Current: 2.22

LSE:WIX's Interest Coverage is ranked worse than
78.19% of 761 companies
in the Retail - Cyclical industry
Industry Median: 7.6 vs LSE:WIX: 2.22

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

Wickes Group Interest Coverage Historical Data

The historical data trend for Wickes 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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Wickes Group Interest Coverage Chart

Wickes Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.68

2.54

3.08

2.34

2.22

Wickes Group Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial					2.22	3.78	0.86	3.04	1.44

Competitive Comparison of Wickes Group's Interest Coverage

For the Home Improvement Retail subindustry, Wickes 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.

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

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

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

Wickes 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.

Wickes 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, Wickes Group's Interest Expense was £-28 Mil. Its Operating Income was £63 Mil. And its Long-Term Debt & Capital Lease Obligation was £596 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	62.9	/	-28.3
	=	2.22

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

Here, for the six months ended in Dec. 2023, Wickes Group's Interest Expense was £-15 Mil. Its Operating Income was £21 Mil. And its Long-Term Debt & Capital Lease Obligation was £596 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	20.9	/	-14.5
	=	1.44

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

Wickes Group (LSE:WIX) 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 .

Wickes Group Interest Coverage Related Terms

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

Wickes Group (LSE:WIX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Wickes Group PLC (LSE:WIX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

WIXl:UK

Address

19 Colonial Way, Vision House, Watford, GBR, WD24 4JL

Website

https://www.wickesplc.co.uk

Wickes Group PLC is a digitally-led, service-enabled home improvement retailer, delivering choice, convenience, value service to customers across the United Kingdom. Its three key customers include the Local Trade, DIY and Do It For Me (DIFM). The company operates from its network of 232 right-sized stores, which support nationwide fulfilment from convenient locations throughout the United Kingdom, and through its digital channels including its website, TradePro mobile app for trade members and its DIY app. These digital channels allow customers to research and order an extended range of its products and services and arrange virtual and in-person design consultations. The company has a single operating segment.