Adcorp Holdings (JSE:ADR) Interest Coverage : 2.07 (As of Aug. 2023)

Adcorp Holdings Interest Coverage Chart

Adcorp Holdings Annual Data
	Trend	Feb14	Feb15	Feb16	Feb17	Feb18	Feb19	Feb20	Feb21	Feb22	Feb23
Interest Coverage		Get a 7-Day Free Trial					3.62	-	0.18	2.63	3.50

Adcorp Holdings Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Interest Coverage	Get a 7-Day Free Trial															1.80	3.49	2.22	4.94	2.07

Competitive Comparison of Adcorp Holdings's Interest Coverage

For the Staffing & Employment Services subindustry, Adcorp Holdings'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.

Adcorp Holdings's Interest Coverage Distribution in the Business Services Industry

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

* The bar in red indicates where Adcorp Holdings's Interest Coverage falls into.

Adcorp Holdings 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Adcorp Holdings's Interest Coverage for the fiscal year that ended in Feb. 2023 is calculated as

Here, for the fiscal year that ended in Feb. 2023, Adcorp Holdings's Interest Expense was R-51 Mil. Its Operating Income was R179 Mil. And its Long-Term Debt & Capital Lease Obligation was R332 Mil.

Adcorp Holdings's Interest Coverage for the quarter that ended in Aug. 2023 is calculated as

Here, for the six months ended in Aug. 2023, Adcorp Holdings's Interest Expense was R-24 Mil. Its Operating Income was R50 Mil. And its Long-Term Debt & Capital Lease Obligation was R317 Mil.

* 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.

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

Adcorp Holdings  (JSE:ADR) 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 .

Adcorp Holdings Interest Coverage Related Terms

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Adcorp Holdings (JSE:ADR) Business Description