MLG Oz (ASX:MLG) Interest Coverage : 5.98 (As of Dec. 2023)

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What is MLG Oz 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. MLG Oz's Operating Income for the six months ended in Dec. 2023 was A$11.8 Mil. MLG Oz's Interest Expense for the six months ended in Dec. 2023 was A$-2.0 Mil. MLG Oz's interest coverage for the quarter that ended in Dec. 2023 was 5.98. The higher the ratio, the stronger the company's financial strength is.

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

ASX:MLG' s Interest Coverage Range Over the Past 10 Years
Min: 4.93 Med: 11.04 Max: 21.17
Current: 21.17

ASX:MLG's Interest Coverage is ranked worse than
73.32% of 1342 companies
in the Metals & Mining industry
Industry Median: No Debt vs ASX:MLG: 21.17

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

MLG Oz Interest Coverage Historical Data

The historical data trend for MLG Oz'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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MLG Oz Interest Coverage Chart

MLG Oz Annual Data

Trend

Jun21

Jun22

Jun23

Interest Coverage

11.04

12.94

4.93

MLG Oz Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			1.08	-	0.72	-	5.98

Competitive Comparison of MLG Oz's Interest Coverage

For the Other Industrial Metals & Mining subindustry, MLG Oz'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.

MLG Oz's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, MLG Oz's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MLG Oz's Interest Coverage falls into.

MLG Oz 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.

MLG Oz's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, MLG Oz's Interest Expense was A$-0.7 Mil. Its Operating Income was A$3.5 Mil. And its Long-Term Debt & Capital Lease Obligation was A$30.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	3.513	/	-0.713
	=	4.93

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

Here, for the six months ended in Dec. 2023, MLG Oz's Interest Expense was A$-2.0 Mil. Its Operating Income was A$11.8 Mil. And its Long-Term Debt & Capital Lease Obligation was A$29.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	11.848	/	-1.982
	=	5.98

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

MLG Oz (ASX:MLG) 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 .

MLG Oz Interest Coverage Related Terms

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

MLG Oz (ASX:MLG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » MLG Oz Ltd (ASX:MLG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

10 Yindi Way, Broadwood, Kalgoorlie, WA, AUS, 6430

Website

https://www.mlgoz.com.au

MLG Oz Ltd operates within the Australian mining industry. It offers comprehensive supply chain solutions such as crushing and screening, quarry products and bulk transport services.