SPAR Group (SPAR Group) Interest Coverage : 4.65 (As of Dec. 2023)

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What is SPAR 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. SPAR Group's Operating Income for the three months ended in Dec. 2023 was $3.1 Mil. SPAR Group's Interest Expense for the three months ended in Dec. 2023 was $-0.7 Mil. SPAR Group's interest coverage for the quarter that ended in Dec. 2023 was 4.65. The higher the ratio, the stronger the company's financial strength is.

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

SGRP' s Interest Coverage Range Over the Past 10 Years
Min: 3.41 Med: 13.12 Max: 20.82
Current: 5.11

SGRP's Interest Coverage is ranked worse than
67.22% of 790 companies
in the Business Services industry
Industry Median: 13.395 vs SGRP: 5.11

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

SPAR Group Interest Coverage Historical Data

The historical data trend for SPAR 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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SPAR Group Interest Coverage Chart

SPAR Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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9.74

14.09

14.81

8.13

5.11

SPAR Group 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															4.60	8.08	4.18	4.06	4.65

Competitive Comparison of SPAR Group's Interest Coverage

For the Specialty Business Services subindustry, SPAR 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.

SPAR Group's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, SPAR Group's Interest Coverage distribution charts can be found below:

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

SPAR 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.

SPAR Group'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, SPAR Group's Interest Expense was $-1.9 Mil. Its Operating Income was $9.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	9.806	/	-1.919
	=	5.11

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

Here, for the three months ended in Dec. 2023, SPAR Group's Interest Expense was $-0.7 Mil. Its Operating Income was $3.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3.118	/	-0.671
	=	4.65

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

SPAR Group (NAS:SGRP) 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 .

SPAR Group Interest Coverage Related Terms

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

SPAR Group (SPAR Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » SPAR Group Inc (NAS:SGRP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PMH:Germany

Address

1910 Opdyke Court, Auburn Hills, MI, USA, 48326

Website

https://www.sparinc.com

SPAR Group Inc is a supplier of merchandising and other marketing services. It also provides in-store event staffing, product sampling, audit services, furniture and other product assembly services, technology services and marketing research services. The company divides its operations into two reportable segments: Domestic division is comprised of all operations within the United States; and The International division is a consolidation of all other operations and joint ventures. Its customers are from retail and manufacturing segments. Its geographic presence is in Brazil, South Africa, Mexico, China, Japan, India, Canada, Australia, Turkey, and United States from where it generates maximum revenue.

Executives

Pato Antonio Calisto	officer: Chief Financial Officer	C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
Robert G/ Brown	director, 10 percent owner, officer: Chairman, Chief Executive Offi
Spar Business Services Inc	other: Affiliated with Robert G Brown	7711 N MILITARY TRAIL, SUITE 1000, WEST PALM BEACH FL 33410
Williams H Bartels	director, 10 percent owner, officer: Vice Chairman
Sean Whelan	director	C/O ZOMEDICA CORP., 100 PHOENIX DRIVE, SUITE 125, ANN ARBOR MI 48108
Michael Wager	director	100 BURTT ROAD, SUITE 115, BOSTON MA 01810
Kori Belzer	officer: Chief Operations Officer	SPAR GROUP INC, 580 WHITE PLAINS RD., TARRYTOWN NY 10591
Fay Devriese	officer: Chief Financial Officer	C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
Ronald Wayne Lutz	officer: Chief Global CommercialOfficer	C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
William Linnane	officer: Chief Strategy & GrowthOfficer	C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
Arthur H Baer	director	61 BUSHNELL ROAD, HILLSDALE NY 12529
Mike R. Matacunas	director, officer: Chief Executive Officer	500 VOLVO PARKWAY, CHESAPEAKE VA 23320
James Richard Brown	director	C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
Igor Novgorodtsev	director	C/O SPAR GROUP, INC. 333 WESTCHESTER AVE, SOUTH BUILDING, SUITE 204, WHITE PLAINS NY 10604
James R Segreto	officer: Controller	C/O SPAR GROUP INC, 580 WHITE PLAINS RD, TARRYTOWN NY 10591