Is Magazine Luiza financially healthy?
Not really
Magazine Luiza earns only 0.9 times its interest bill, which leaves little room.
The numbers behind it
Net debt / EBITDA3.0 years
Cash vs. debtR$1.6B vs. R$8.5B
Current ratio1.2×Short-term assets for each R$1 of bills due within a year
Interest coverage0.9×How many times operating profit covers the interest bill
How we decide
We measure debt in years of earnings (net debt / EBITDA): under 1 is very comfortable, 1 to 3 is manageable, above 3 is heavy. A company that earns less than 3 times its interest bill also counts as weak.
More questions about Magazine Luiza
Data as of Nov 13, 2026.