Merafe Resources (JSE:MRF) Interest Coverage : 792.91 (As of Dec. 2023)

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What is Merafe Resources 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. Merafe Resources's Operating Income for the six months ended in Dec. 2023 was R662 Mil. Merafe Resources's Interest Expense for the six months ended in Dec. 2023 was R-1 Mil. Merafe Resources's interest coverage for the quarter that ended in Dec. 2023 was 792.91. 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. Merafe Resources Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

JSE:MRF' s Interest Coverage Range Over the Past 10 Years
Min: 6.74 Med: 49.02 Max: 23580.53
Current: 1277.31

JSE:MRF's Interest Coverage is ranked worse than
66.72% of 1340 companies
in the Metals & Mining industry
Industry Median: No Debt vs JSE:MRF: 1277.31

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

Merafe Resources Interest Coverage Historical Data

The historical data trend for Merafe Resources'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.

* Premium members only.

Merafe Resources Interest Coverage Chart

Merafe Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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43.35

23,580.53

8,951.05

1,277.31

Merafe Resources Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	1,602.23	-	1,864.35	792.91

Competitive Comparison of Merafe Resources's Interest Coverage

For the Other Industrial Metals & Mining subindustry, Merafe Resources'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.

Merafe Resources's Interest Coverage Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Merafe Resources's Interest Coverage falls into.

Merafe Resources 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.

Merafe Resources'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, Merafe Resources's Interest Expense was R-2 Mil. Its Operating Income was R1,947 Mil. And its Long-Term Debt & Capital Lease Obligation was R6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1946.616	/	-1.524
	=	1,277.31

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

Here, for the six months ended in Dec. 2023, Merafe Resources's Interest Expense was R-1 Mil. Its Operating Income was R662 Mil. And its Long-Term Debt & Capital Lease Obligation was R6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	662.082	/	-0.835
	=	792.91

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

Merafe Resources (JSE:MRF) 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 .

Merafe Resources Interest Coverage Related Terms

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

Merafe Resources (JSE:MRF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Merafe Resources Ltd (JSE:MRF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RZT:Germany

Address

35 Ballyclare Drive, Building B, 2nd floor, Ballyoaks Office Park, Bryanston, ZAF, 2191

Website

https://www.meraferesources.co.za

Merafe Resources Ltd through its wholly-owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, participates in chrome mining and the beneficiation of chrome ore into ferrochrome. The Glencore-Merafe Chrome Venture (Venture) operates five ferrochrome smelters, twenty-two ferrochrome furnaces, and nine mines, situated in the North-West, Limpopo, and Mpumalanga provinces of South Africa. The company has operating mines namely, Waterval mine; Marikana West; and Kroondal Gemini. The Group has one reportable segment being the mining and beneficiation of chrome ore into ferrochrome and associated minerals.