Samsonite International (HKSE:01910) Interest Coverage : 5.07 (As of Dec. 2023)

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What is Samsonite International 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. Samsonite International's Operating Income for the three months ended in Dec. 2023 was HK$1,276 Mil. Samsonite International's Interest Expense for the three months ended in Dec. 2023 was HK$-251 Mil. Samsonite International's interest coverage for the quarter that ended in Dec. 2023 was 5.07. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:01910' s Interest Coverage Range Over the Past 10 Years
Min: 0.94 Med: 6.32 Max: 97.74
Current: 4.68

HKSE:01910's Interest Coverage is ranked worse than
53.23% of 712 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.25 vs HKSE:01910: 4.68

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

Samsonite International Interest Coverage Historical Data

The historical data trend for Samsonite International'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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Samsonite International Interest Coverage Chart

Samsonite International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.91

0.94

3.83

5.09

Samsonite International Quarterly Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.14	4.48	N/A	4.39	5.07

Competitive Comparison of Samsonite International's Interest Coverage

For the Footwear & Accessories subindustry, Samsonite International'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.

Samsonite International's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Samsonite International's Interest Coverage distribution charts can be found below:

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

Samsonite International 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.

Samsonite International'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, Samsonite International's Interest Expense was HK$-1,011 Mil. Its Operating Income was HK$5,152 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$16,308 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	5152.125	/	-1011.369
	=	5.09

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

Here, for the three months ended in Dec. 2023, Samsonite International's Interest Expense was HK$-251 Mil. Its Operating Income was HK$1,276 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$16,308 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1276.121	/	-251.476
	=	5.07

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

Samsonite International (HKSE:01910) 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 .

Samsonite International Interest Coverage Related Terms

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

Samsonite International (HKSE:01910) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Samsonite International SA (HKSE:01910) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SMSOF:USA SMSEY:USA 1SO:Germany

Address

13-15, Avenue de la Liberte, Luxembourg, LUX, L-1931

Website

https://corporate.samsonite.com/en/home.html

Samsonite is the world's largest luggage company with a 19.5% market share in 2018. The company produces and sells travel luggage under various brands targeting the mid-market to high-end consumers. The group's key brand is Samsonite, whose market presence is well established, followed by Tumi, the high-end brand acquired in 2016, which alongside mass-market brand American Tourister, are the next largest earnings contributors. The majority of its products are manufactured by third parties, but Samsonite does produce its own select proprietary materials. Except for Tumi, most of its products are sold to retailers, but the acquisition of online retailer eBags in early 2017 is boosting its online sales channel direct to consumers.

Samsonite International (HKSE:01910) Headlines

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