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CompoSecure (CompoSecure) Interest Coverage : 2.92 (As of Dec. 2023)


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What is CompoSecure 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. CompoSecure's Operating Income for the three months ended in Dec. 2023 was $30.5 Mil. CompoSecure's Interest Expense for the three months ended in Dec. 2023 was $-10.5 Mil. CompoSecure's interest coverage for the quarter that ended in Dec. 2023 was 2.92. 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. CompoSecure Inc interest coverage is 4.33, which is low.

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

CMPO' s Interest Coverage Range Over the Past 10 Years
Min: 4.33   Med: 9.57   Max: 15.94
Current: 4.33


CMPO's Interest Coverage is ranked worse than
75.47% of 2303 companies
in the Industrial Products industry
Industry Median: 13.77 vs CMPO: 4.33

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


CompoSecure Interest Coverage Historical Data

The historical data trend for CompoSecure'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.

* Premium members only.

CompoSecure Interest Coverage Chart

CompoSecure Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial 15.94 13.67 7.96 5.37 4.33

CompoSecure Quarterly Data
Dec18 Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.63 4.96 5.58 5.06 2.92

Competitive Comparison of CompoSecure's Interest Coverage

For the Metal Fabrication subindustry, CompoSecure'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.


CompoSecure's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, CompoSecure's Interest Coverage distribution charts can be found below:

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



CompoSecure 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.

CompoSecure'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, CompoSecure's Interest Expense was $-27.5 Mil. Its Operating Income was $119.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $332.4 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*119.087/-27.525
=4.33

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

Here, for the three months ended in Dec. 2023, CompoSecure's Interest Expense was $-10.5 Mil. Its Operating Income was $30.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $332.4 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*30.527/-10.458
=2.92

* 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.

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


CompoSecure  (NAS:CMPO) 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 .


CompoSecure Interest Coverage Related Terms

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


CompoSecure (CompoSecure) Business Description

Traded in Other Exchanges
N/A
Address
309 Pierce Street, Somerset, NJ, USA, 08873
CompoSecure Inc is engaged in designing and manufacturing premium financial cards. The Company's innovative metal payment card technology and Arculus security and authentication capabilities deliver unique, premium branded experiences which enable people to access and use their assets, and ensure trust at the point of a transaction. Its products include Metal Cards and Arculus, a digital security platform.
Executives
Bleichroeder Lp 10 percent owner 1345 AVENUE OF THE AMERICAS, 47TH FLOOR, NEW YORK NY 10105
Timothy Walter Fitzsimmons officer: Chief Financial Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Roman Dbdr Tech Sponsor Llc 10 percent owner 2877 PARADISE ROAD, #702, LAS VEGAS NV 89109
Doll Dixon R Jr. 10 percent owner, officer: Co-Chief Executive Officer 4555 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Donald G Basile director, 10 percent owner, officer: See Remarks 4555 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Tikvah Management Llc 10 percent owner 5970 FAIRVIEW ROAD, SUITE 705, CHARLOTTE NC 28210
Paul Galant director 88 WEST PLUMERIA DRIVE, SAN JOSE CA 95134
Dixon Doll director 2420 SAND HILL RD, STE 200, MENLO PARK CA 94025
Amanda Mandy Gourbault officer: Chief Revenue Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Jonathan Wilk director, officer: Chief Executive Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Steven J. Mclaughlin 10 percent owner 277 PARK AVENUE 29TH FLOOR, SUITE B, NEW YORK NY 10172
Gregoire Maes officer: Chief Operating Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Ezrah Charitable Trust 10 percent owner 831 E. MOOREHEAD STREET, SUITE 940, CHARLOTTE NC 28202
Adam Joseph Lowe officer: Chief Innovation Officer C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873
Michele Logan director, 10 percent owner C/O COMPOSECURE, INC., 309 PIERCE STREET, SOMERSET NJ 08873