Cencosud (XSGO:CENCOSUD) Interest Coverage : 4.65 (As of Dec. 2023)

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What is Cencosud 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. Cencosud's Operating Income for the three months ended in Dec. 2023 was CLP244,395 Mil. Cencosud's Interest Expense for the three months ended in Dec. 2023 was CLP-52,511 Mil. Cencosud's interest coverage for the quarter that ended in Dec. 2023 was 4.65. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Cencosud SA interest coverage is 4.48, which is low.

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

XSGO:CENCOSUD' s Interest Coverage Range Over the Past 10 Years
Min: 1.52 Med: 1.88 Max: 23.56
Current: 4.48

XSGO:CENCOSUD's Interest Coverage is ranked worse than
63.14% of 757 companies
in the Retail - Cyclical industry
Industry Median: 7.85 vs XSGO:CENCOSUD: 4.48

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

Cencosud Interest Coverage Historical Data

The historical data trend for Cencosud'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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Cencosud Interest Coverage Chart

Cencosud Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.53

4.52

23.56

11.17

5.23

Cencosud Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															7.60	3.69	4.79	4.99	4.65

Competitive Comparison of Cencosud's Interest Coverage

For the Department Stores subindustry, Cencosud'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.

Cencosud's Interest Coverage Distribution in the Retail - Cyclical Industry

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

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

Cencosud 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.

Cencosud'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, Cencosud's Interest Expense was CLP-179,658 Mil. Its Operating Income was CLP939,999 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP4,803,407 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	939998.671	/	-179658.292
	=	5.23

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

Here, for the three months ended in Dec. 2023, Cencosud's Interest Expense was CLP-52,511 Mil. Its Operating Income was CLP244,395 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP4,803,407 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	244395.243	/	-52510.691
	=	4.65

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

Cencosud (XSGO:CENCOSUD) 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 .

Cencosud Interest Coverage Related Terms

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

Cencosud (XSGO:CENCOSUD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Cencosud SA (XSGO:CENCOSUD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Avenida Kennedy 9001, Piso 6, Las Condes, Santiago, CHL

Website

https://www.cencosud.com

Cencosud SA is a multi-brand retailer in South America. Headquartered in Chile, the Company is organized in five reportable segments: Supermarkets, Shopping Centers, Home Improvement stores, Department stores, and Financial Services., the company is involved in commercial real estate development by leasing shopping mall space to third parties. Cencosud also provides private-label credit cards and financial services to retail customers. The portfolio includes both low and high-end brands like Jumbo, Wong, Perini, Santa Isabel, Bretas, and Unicenter. The company generates the majority of its revenue from the Supermarket segment.

Cencosud (XSGO:CENCOSUD) Headlines

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