Somec SpA (MIL:SOM) Interest Coverage : 0.41 (As of Jun. 2023)

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What is Somec SpA 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. Somec SpA's Operating Income for the six months ended in Jun. 2023 was €1.1 Mil. Somec SpA's Interest Expense for the six months ended in Jun. 2023 was €-2.7 Mil. Somec SpA's interest coverage for the quarter that ended in Jun. 2023 was 0.41. The higher the ratio, the stronger the company's financial strength is.

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

MIL:SOM' s Interest Coverage Range Over the Past 10 Years
Min: 1.04 Med: 7.57 Max: 15.89
Current: 1.04

MIL:SOM's Interest Coverage is ranked worse than
91.77% of 1263 companies
in the Construction industry
Industry Median: 7.06 vs MIL:SOM: 1.04

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

Somec SpA Interest Coverage Historical Data

The historical data trend for Somec SpA'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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Somec SpA Interest Coverage Chart

Somec SpA Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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15.89

10.36

1.38

4.77

1.26

Somec SpA Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Interest Coverage	Get a 7-Day Free Trial								11.80	0.48	-	2.15	0.41

Competitive Comparison of Somec SpA's Interest Coverage

For the Building Products & Equipment subindustry, Somec SpA'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.

Somec SpA's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Somec SpA's Interest Coverage distribution charts can be found below:

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

Somec SpA 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.

Somec SpA'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, Somec SpA's Interest Expense was €-2.3 Mil. Its Operating Income was €2.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €84.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	2.92	/	-2.32
	=	1.26

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

Here, for the six months ended in Jun. 2023, Somec SpA's Interest Expense was €-2.7 Mil. Its Operating Income was €1.1 Mil. And its Long-Term Debt & Capital Lease Obligation was €86.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	1.114	/	-2.702
	=	0.41

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

Somec SpA (MIL:SOM) 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 .

Somec SpA Interest Coverage Related Terms

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

Somec SpA (MIL:SOM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Somec SpA (MIL:SOM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Via Palu, 30, San Vendemiano, Treviso, ITA, 31020

Website

http://www.somecgroup.com

Somec SpA designs and manufactures glass envelopes for cruise ships and special architectural projects. Its products include balcony sliding doors, public area doors, handrails, windscreens, and balcony dividers.

Somec SpA (MIL:SOM) Headlines

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