Franchise Group (Franchise Group) Interest Coverage : 0.27 (As of Jun. 2023)

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What is Franchise Group 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. Franchise Group's Operating Income for the three months ended in Jun. 2023 was $23 Mil. Franchise Group's Interest Expense for the three months ended in Jun. 2023 was $-83 Mil. Franchise Group's interest coverage for the quarter that ended in Jun. 2023 was 0.27. The higher the ratio, the stronger the company's financial strength is.

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

FRG' s Interest Coverage Range Over the Past 10 Years
Min: 0.47 Med: 9.12 Max: 25.7
Current: 0.47

FRG's Interest Coverage is not ranked
in the Retail - Cyclical industry.
Industry Median: 7.83 vs FRG: 0.47

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

Franchise Group Interest Coverage Historical Data

The historical data trend for Franchise Group'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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Franchise Group Interest Coverage Chart

Franchise Group Annual Data

Trend

Apr13

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Dec20

Dec21

Dec22

Interest Coverage

Get a 7-Day Free Trial

3.95

N/A

0.54

1.70

0.86

Franchise Group Quarterly Data
	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Interest Coverage	Get a 7-Day Free Trial															0.87	0.72	0.41	0.56	0.27

Competitive Comparison of Franchise Group's Interest Coverage

For the Specialty Retail subindustry, Franchise Group'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.

Franchise Group's Interest Coverage Distribution in the Retail - Cyclical Industry

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

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

Franchise Group 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.

Franchise Group'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, Franchise Group's Interest Expense was $-340 Mil. Its Operating Income was $291 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,202 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	291.207	/	-339.982
	=	0.86

Franchise Group's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, Franchise Group's Interest Expense was $-83 Mil. Its Operating Income was $23 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,301 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	22.5	/	-83.364
	=	0.27

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

Franchise Group (NAS:FRG) 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 .

Franchise Group Interest Coverage Related Terms

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

Franchise Group (Franchise Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Franchise Group Inc (NAS:FRG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

109 Innovation Court, Suite J, Delaware, OH, USA, 43015

Website

https://www.franchisegrp.com

Franchise Group Inc is a personal services company that provides retail federal and state income tax preparation services and related tax settlement products. The vast majority of these offices operate in the United States under the Liberty Tax Service and SiempreTax+ brand names. Liberty Tax also provides online do-it-yourself tax programs within the U.S. The sale of financial products and tax preparation service fees also contribute to sizable percentages of the company's total income. Liberty Tax also operates a smaller portfolio of wholly-owned company offices. The company's reportable segments are Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy's and Sylvan.

Executives

Daniel Meitner Ondeck	10 percent owner	13301 BEALL CREEK CT., POTOMAC MD 20854
Richard W Riley	10 percent owner	B RILEY AND CO, 11100 SANTA MONICA BLVD STE 800, LOS ANGELES CA 90025
Bryant R Riley	director, 10 percent owner	C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Kelleher Thomas J /adv	10 percent owner	C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Randall E Paulson	10 percent owner
Nanhi Singh	director	109 INNOVATION COURT, SUITE J, DELAWARE OH 43015
Gary S Rich	director	C/O THE READER'S DIGEST ASSOCIATION, READER'S DIGEST ROAD, PLEASANTVILLE NY 10570
Brian Randall Kahn	director, 10 percent owner, officer: Chief Executive Officer	5506 WORSHAM COURT, WINDERMERE FL 34786
Patrick A Cozza	director	C/O HSBC INSURANCE, 545 WASHINGTON BLVD, JERSEY CITY NJ 07310
Lee A. Wright	officer: Chief Commercial Officer	C/O DIAMOND CASTLE HOLDINGS, LLC, 280 PARK AVENUE, 25TH FLOOR, EAST TOWER, NEW YORK NY 10017
Andrew M Laurence	director	C/O API TECHNOLOGIES CORP., ONE NORTH WACKER DRIVE SUITE 4400, CHICAGO IL 60606
Cynthia S Dubin	director	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Lisa M Fairfax	director	2387 LIBERTY WAY, VIRGINIA BEACH VA 23456
Vintage Capital Management Llc	director, 10 percent owner, officer: Chief Executive Officer	4705 S APOPKA VINELAND ROAD SUITE 210, ORLANDO FL 32819
B. Riley Financial, Inc.	10 percent owner	11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025