Mayville Engineering Co (Mayville Engineering Co) Interest Coverage : 1.50 (As of Dec. 2023)

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What is Mayville Engineering Co 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. Mayville Engineering Co's Operating Income for the three months ended in Dec. 2023 was $5.4 Mil. Mayville Engineering Co's Interest Expense for the three months ended in Dec. 2023 was $-3.6 Mil. Mayville Engineering Co's interest coverage for the quarter that ended in Dec. 2023 was 1.50. The higher the ratio, the stronger the company's financial strength is.

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

MEC' s Interest Coverage Range Over the Past 10 Years
Min: 1.82 Med: 4.37 Max: 6.34
Current: 1.82

MEC's Interest Coverage is ranked worse than
90.36% of 2302 companies
in the Industrial Products industry
Industry Median: 13.755 vs MEC: 1.82

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

Mayville Engineering Co Interest Coverage Historical Data

The historical data trend for Mayville Engineering Co'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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Mayville Engineering Co Interest Coverage Chart

Mayville Engineering Co Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

4.37

6.34

1.82

Mayville Engineering Co 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															2.30	2.82	2.17	1.51	1.50

Competitive Comparison of Mayville Engineering Co's Interest Coverage

For the Metal Fabrication subindustry, Mayville Engineering Co'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.

Mayville Engineering Co's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where Mayville Engineering Co's Interest Coverage falls into.

Mayville Engineering Co 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.

Mayville Engineering Co'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, Mayville Engineering Co's Interest Expense was $-11.1 Mil. Its Operating Income was $20.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $176.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	20.191	/	-11.092
	=	1.82

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

Here, for the three months ended in Dec. 2023, Mayville Engineering Co's Interest Expense was $-3.6 Mil. Its Operating Income was $5.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $176.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5.354	/	-3.559
	=	1.50

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

Mayville Engineering Co (NYSE:MEC) 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 .

Mayville Engineering Co Interest Coverage Related Terms

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

Mayville Engineering Co (Mayville Engineering Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Mayville Engineering Co Inc (NYSE:MEC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

2YN:Germany

Address

715 South Street, Mayville, WI, USA, 53050

Website

https://www.mecinc.com

Mayville Engineering Co Inc is involved in a manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. Its customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction, powersports, agriculture, military, and other end markets. Its services comprise stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services.

Executives

Steven L Fisher	director	100 N.E. ADAMS STREET, PEORIA IL 61629
Jagadeesh A Reddy	director, officer: President & CEO	715 SOUTH STREET, MAYVILLE WI 53050
Allen J Carlson	director	1500 WEST UNIVERSITY PARKWAY, SARASOTA FL 34243
Robert L Mccormick	director	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Timothy L Christen	director, other: Chair of the Board	715 SOUTH STREET, MAYVILLE WI 53050
Jennifer J. Kent	director	QUAD/GRAPHICS, INC., N61 W23044 HARRY'S WAY, SUSSEX WI 53089-3995
Jay O. Rothman	director	C/O QUAD/GRAPHICS, INC., N61 W23044 HARRY'S WAY, SUSSEX WI 53089
Patrick D Michels	director	715 SOUTH STREET, MAYVILLE WI 53050
Rachele Marie Lehr	officer: Chief Human Resources Officer	12301 W WIRTH ST, WAUWATOSA WI 53222
Sean P Leuba	officer: SVP, Corp. Development & GC	715 SOUTH STREET, MAYVILLE WI 53050
Todd M Butz	officer: Chief Financial Officer	715 SOUTH STREET, MAYVILLE WI 53050
Robert D Kamphuis	director, officer: Chairman, Pres. & CEO	715 SOUTH STREET, MAYVILLE WI 53050
Craig E Johnson	director	715 SOUTH STREET, MAYVILLE WI 53050
Eric J Welak	officer: EVP - Fabrication	715 SOUTH STREET, MAYVILLE WI 53050
St. Peter John A	director	715 SOUTH STREET, MAYVILLE WI 53050