Forvia SE (XPAR:FRVIA) Interest Coverage : 16.31 (As of Dec. 2023)

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What is Forvia SE 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. Forvia SE's Operating Income for the six months ended in Dec. 2023 was €669 Mil. Forvia SE's Interest Expense for the six months ended in Dec. 2023 was €-41 Mil. Forvia SE's interest coverage for the quarter that ended in Dec. 2023 was 16.31. The higher the ratio, the stronger the company's financial strength is.

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

XPAR:FRVIA' s Interest Coverage Range Over the Past 10 Years
Min: 1.57 Med: 7.6 Max: 15.38
Current: 15.34

XPAR:FRVIA's Interest Coverage is ranked better than
65.51% of 1038 companies
in the Vehicles & Parts industry
Industry Median: 7.695 vs XPAR:FRVIA: 15.34

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

Forvia SE Interest Coverage Historical Data

The historical data trend for Forvia SE'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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Forvia SE Interest Coverage Chart

Forvia SE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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5.96

1.57

15.38

13.78

15.34

Forvia SE Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															11.91	8.18	22.68	14.36	16.31

Competitive Comparison of Forvia SE's Interest Coverage

For the Auto Parts subindustry, Forvia SE'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.

Forvia SE's Interest Coverage Distribution in the Vehicles & Parts Industry

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

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

Forvia SE 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.

Forvia SE'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, Forvia SE's Interest Expense was €-81 Mil. Its Operating Income was €1,246 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,453 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1245.9	/	-81.2
	=	15.34

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

Here, for the six months ended in Dec. 2023, Forvia SE's Interest Expense was €-41 Mil. Its Operating Income was €669 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,453 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	668.6	/	-41
	=	16.31

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

Forvia SE (XPAR:FRVIA) 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 .

Forvia SE Interest Coverage Related Terms

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

Forvia SE (XPAR:FRVIA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Forvia SE (XPAR:FRVIA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

FURCF:USA 1FRVIA:Italy FRVIAp:UK 0MGR:UK FAU:Germany

Address

23-27 avenue des Champs-Pierreux, Nanterre, FRA, 92000

Website

https://www.faurecia.com

Forvia operates in automotive seating, interior systems, emission control technologies, electronics, lighting, and a segment called lifecycle solutions that does automotive-related recycling. The company has a global presence, with over 300 industrial facilities and 63 R&D centers in more than 40 countries, but much of its workforce is located in high-cost countries. Forvia's five largest customers by percentage of 2022 revenue are Volkswagen at 15.4%, Stellantis at 11.7%, Ford at 7.7%, the Renault-Nissan-Mitsubishi Alliance at 6.2%, and Mercedes-Benz at 6.1%. Geographically, Europe accounted for 44% of 2022 revenue, followed by North America at 25%, China at 21%, and all other regions at 10%.

Forvia SE (XPAR:FRVIA) Headlines

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