Fiskars Oyj (OHEL:FSKRS) Interest Coverage : 1.68 (As of Mar. 2024)

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What is Fiskars Oyj 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. Fiskars Oyj's Operating Income for the three months ended in Mar. 2024 was €6 Mil. Fiskars Oyj's Interest Expense for the three months ended in Mar. 2024 was €-4 Mil. Fiskars Oyj's interest coverage for the quarter that ended in Mar. 2024 was 1.68. 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. Fiskars Oyj interest coverage is 2.13, which is low.

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

OHEL:FSKRS' s Interest Coverage Range Over the Past 10 Years
Min: 2.13 Med: 13.55 Max: 27.31
Current: 2.13

OHEL:FSKRS's Interest Coverage is ranked worse than
79.31% of 754 companies
in the Retail - Cyclical industry
Industry Median: 7.83 vs OHEL:FSKRS: 2.13

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

Fiskars Oyj Interest Coverage Historical Data

The historical data trend for Fiskars Oyj'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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Fiskars Oyj Interest Coverage Chart

Fiskars Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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14.21

19.70

14.62

12.89

2.63

Fiskars Oyj Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															8.06	3.13	4.31	0.81	1.68

Competitive Comparison of Fiskars Oyj's Interest Coverage

For the Home Improvement Retail subindustry, Fiskars Oyj'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.

Fiskars Oyj's Interest Coverage Distribution in the Retail - Cyclical Industry

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

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

Fiskars Oyj 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.

Fiskars Oyj'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, Fiskars Oyj's Interest Expense was €-28 Mil. Its Operating Income was €72 Mil. And its Long-Term Debt & Capital Lease Obligation was €448 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	72.4	/	-27.5
	=	2.63

Fiskars Oyj's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Fiskars Oyj's Interest Expense was €-4 Mil. Its Operating Income was €6 Mil. And its Long-Term Debt & Capital Lease Obligation was €445 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	6.4	/	-3.8
	=	1.68

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

Fiskars Oyj (OHEL:FSKRS) 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 .

Fiskars Oyj Interest Coverage Related Terms

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

Fiskars Oyj (OHEL:FSKRS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Fiskars Oyj (OHEL:FSKRS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

FKRAF:USA A8X:Germany

Address

Keilaniementie 10, P.O. Box 91, Espoo, FIN, FI-02151

Website

https://www.fiskarsgroup.com

Fiskars Oyj is a Finnish company that supplies consumer products for home, garden, and outdoor use. The company operates in Europe, the Americas, and the Asia-Pacific region. Fiskar's business areas are functional products, which offer household tools; living products, which offer tabletop and interior decoration products; and outdoor products, which offer gear for recreational and professional use. The major brands of the company include Fiskars, Waterford, Wedgwood, Iittala, Gerber, and Royal Copenhagen. The firm derives the majority of its revenue from sales in Europe and the Americas, with overall sales fairly evenly split between the two. Revenue is also fairly evenly split between the functional products and living products segments, stemming mostly from the Fiskars brand.

Fiskars Oyj (OHEL:FSKRS) Headlines

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