Vasta Platform (Vasta Platform) Interest Coverage : 1.57 (As of Mar. 2024)

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What is Vasta Platform 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. Vasta Platform's Operating Income for the three months ended in Mar. 2024 was $21.9 Mil. Vasta Platform's Interest Expense for the three months ended in Mar. 2024 was $-14.0 Mil. Vasta Platform's interest coverage for the quarter that ended in Mar. 2024 was 1.57. The higher the ratio, the stronger the company's financial strength is.

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

VSTA' s Interest Coverage Range Over the Past 10 Years
Min: 0.49 Med: 0.52 Max: 0.8
Current: 0.8

VSTA's Interest Coverage is ranked worse than
95.58% of 181 companies
in the Education industry
Industry Median: 15.51 vs VSTA: 0.80

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

Vasta Platform Interest Coverage Historical Data

The historical data trend for Vasta Platform'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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Vasta Platform Interest Coverage Chart

Vasta Platform Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

0.50

0.53

0.49

0.65

Vasta Platform Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															0.93	-	-	3.37	1.57

Competitive Comparison of Vasta Platform's Interest Coverage

For the Education & Training Services subindustry, Vasta Platform'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.

Vasta Platform's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Vasta Platform's Interest Coverage distribution charts can be found below:

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

Vasta Platform 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.

Vasta Platform'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, Vasta Platform's Interest Expense was $-59.6 Mil. Its Operating Income was $38.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $67.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	38.647	/	-59.576
	=	0.65

Vasta Platform's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Vasta Platform's Interest Expense was $-14.0 Mil. Its Operating Income was $21.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $63.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	21.94	/	-14.019
	=	1.57

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

Vasta Platform (NAS:VSTA) 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 .

Vasta Platform Interest Coverage Related Terms

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

Vasta Platform (Vasta Platform) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Vasta Platform Ltd (NAS:VSTA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Avenue Paulista, 901, 5th Floor, Bela Vista, Sao Paulo, SP, BRA, CEP 01310-100

Website

https://www.vastaedu.com.br

Vasta Platform Ltd operates as an education company in Brazil, engaged in providing end-to-end educational and digital solutions that cater to all needs of private schools operating in the K-12 educational segment. Its business segments are Content and EdTech Platform, and Digital Platform. The Content and EdTech platform derives its results from educational content solutions through digital and printed content, including textbooks, learning systems and other complementary educational services. The Digital Platform enables private schools to aggregate multiple learning strategies and helps them to focus on education, through the Business' physical and digital e-commerce platform and other digital services.