Semapa (XLIS:SEM) Interest Coverage : 8.03 (As of Sep. 2023)

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What is Semapa 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. Semapa's Operating Income for the three months ended in Sep. 2023 was €132 Mil. Semapa's Interest Expense for the three months ended in Sep. 2023 was €-16 Mil. Semapa's interest coverage for the quarter that ended in Sep. 2023 was 8.03. The higher the ratio, the stronger the company's financial strength is.

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

XLIS:SEM' s Interest Coverage Range Over the Past 10 Years
Min: 2.55 Med: 4.99 Max: 18.71
Current: 8.86

XLIS:SEM's Interest Coverage is ranked better than
60.4% of 202 companies
in the Forest Products industry
Industry Median: 6.15 vs XLIS:SEM: 8.86

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

Semapa Interest Coverage Historical Data

The historical data trend for Semapa'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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Semapa Interest Coverage Chart

Semapa Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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7.75

6.60

4.89

8.98

18.71

Semapa Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															25.08	12.06	8.78	7.87	8.03

Competitive Comparison of Semapa's Interest Coverage

For the Paper & Paper Products subindustry, Semapa'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.

Semapa's Interest Coverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Semapa's Interest Coverage distribution charts can be found below:

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

Semapa 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.

Semapa's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Semapa's Interest Expense was €-36 Mil. Its Operating Income was €667 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,136 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	666.973	/	-35.649
	=	18.71

Semapa's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Semapa's Interest Expense was €-16 Mil. Its Operating Income was €132 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,214 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	131.76	/	-16.403
	=	8.03

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

Semapa (XLIS:SEM) 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 .

Semapa Interest Coverage Related Terms

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

Semapa (XLIS:SEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Semapa SA (XLIS:SEM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

0IE9:UK SQQ1:Germany

Address

Avenue Fontes Pereira de Melo, 14 - 10th Floor, Lisboa, PRT, 1050-121

Website

https://www.semapa.pt

Semapa SA makes and sells a variety of paper products as well as cement. The segments of the company are, paper and pulp segment is the production and sale of writing and printing thin paper (UWF) and domestic consumption paper (Tissue), and it is present in the whole value-added chain, from research and development of forestry and agricultural production to the purchase and sale of wood and the production and sale of bleached eucalyptus kraft pulp and electric and thermal energy, as well as its commercialization. The cement and derivatives segment sells cement, ready-mix concrete, and aggregates to the construction and building industries. The environment segment collects animal waste and sells animal fats, food oil, and meal. The majority of revenue comes from the Rest of Europe.