AREIT Prop (JSE:APO) Interest Coverage : No Debt ⁽¹⁾ (As of Dec. 2022)

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What is AREIT Prop 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. AREIT Prop's Operating Income for the three months ended in Dec. 2022 was R7.08 Mil. AREIT Prop's Interest Expense for the three months ended in Dec. 2022 was R0.00 Mil. AREIT Prop has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

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

JSE:APO's Interest Coverage is not ranked ^*
in the REITs industry.
Industry Median: 2.96
* Ranked among companies with meaningful Interest Coverage only.

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

AREIT Prop Interest Coverage Historical Data

The historical data trend for AREIT Prop'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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AREIT Prop Interest Coverage Chart

AREIT Prop Annual Data

Trend

Dec21

Dec22

Interest Coverage

No Debt

63,602.00

AREIT Prop Quarterly Data
	Mar22	Jun22	Sep22	Dec22
Interest Coverage	No Debt	No Debt	No Debt	No Debt

Competitive Comparison of AREIT Prop's Interest Coverage

For the REIT - Diversified subindustry, AREIT Prop'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.

AREIT Prop's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, AREIT Prop's Interest Coverage distribution charts can be found below:

* The bar in red indicates where AREIT Prop's Interest Coverage falls into.

AREIT Prop 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.

AREIT Prop's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, AREIT Prop's Interest Expense was R-0.00 Mil. Its Operating Income was R63.60 Mil. And its Long-Term Debt & Capital Lease Obligation was R0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	63.602	/	-0.001
	=	63,602.00

AREIT Prop's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the three months ended in Dec. 2022, AREIT Prop's Interest Expense was R0.00 Mil. Its Operating Income was R7.08 Mil. And its Long-Term Debt & Capital Lease Obligation was R0.00 Mil.

AREIT Prop had no debt ⁽¹⁾.

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

AREIT Prop (JSE:APO) 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 .

AREIT Prop Interest Coverage Related Terms

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

AREIT Prop (JSE:APO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » AREIT Prop Ltd (JSE:APO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Cape Town, Cape Town, ZAF

Website

http://www.areitprop.co.za

AREIT Prop Ltd is a property group holding leasehold properties focused on the hospitality and medical sector, allowing investors to gain exposure to the property ?market without the exposure to property-related expenses, risks, and debt.