Krones AG (XTER:KRN) Interest Coverage : 36.48 (As of Dec. 2023)

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What is Krones AG 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. Krones AG's Operating Income for the three months ended in Dec. 2023 was €62 Mil. Krones AG's Interest Expense for the three months ended in Dec. 2023 was €-2 Mil. Krones AG's interest coverage for the quarter that ended in Dec. 2023 was 36.48. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Krones AG has enough cash to cover all of its debt. Its financial situation is stable.

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

XTER:KRN' s Interest Coverage Range Over the Past 10 Years
Min: 3.7 Med: 32.07 Max: 126.7
Current: 126.7

XTER:KRN's Interest Coverage is ranked better than
83.28% of 2303 companies
in the Industrial Products industry
Industry Median: 13.77 vs XTER:KRN: 126.70

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

Krones AG Interest Coverage Historical Data

The historical data trend for Krones AG'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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Krones AG Interest Coverage Chart

Krones AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.70

32.07

74.94

17.02

Krones AG 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															N/A	N/A	N/A	149.60	36.48

Competitive Comparison of Krones AG's Interest Coverage

For the Specialty Industrial Machinery subindustry, Krones AG'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.

Krones AG's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where Krones AG's Interest Coverage falls into.

Krones AG 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.

Krones AG'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, Krones AG's Interest Expense was €-16 Mil. Its Operating Income was €280 Mil. And its Long-Term Debt & Capital Lease Obligation was €103 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	280.39	/	-16.471
	=	17.02

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

Here, for the three months ended in Dec. 2023, Krones AG's Interest Expense was €-2 Mil. Its Operating Income was €62 Mil. And its Long-Term Debt & Capital Lease Obligation was €103 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	62.49	/	-1.713
	=	36.48

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

Krones AG (XTER:KRN) 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 .

Krones AG Interest Coverage Related Terms

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

Krones AG (XTER:KRN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Krones AG (XTER:KRN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

KRNTY:USA KRNd:UK 0LQ4:UK

Address

Bohmerwaldstrasse 5, Neutraubling, BY, DEU, 93073

Website

https://www.krones.com

Krones AG offers machinery and systems for filling, packaging, and producing beverages. Part of its product portfolio is information technology and planning associated with logistics and production lines. In addition to packaging, the company has cellar systems to treat and store sensitive beverages. Krones has two reportable segments: product filling and decoration, which is the highest revenue segment, and machines and lines for beverage production and process technology segment. Its customer base includes companies in the beverage, food, chemical, pharmaceutical, and cosmetic industries, but beverage companies account the Krones' revenue. While the company has a presence, Germany remains the central location for the development of machines, lines, and services.

Executives

Christoph Klenk	Board of Directors
Ralf Goldbrunner	Board of Directors
Petra Schadeberg-herrmann	Supervisory Board
Josef Weitzer	Supervisory Board

Krones AG (XTER:KRN) Headlines

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