OUTsurance Group (JSE:OUT) Interest Coverage : 78.91 (As of Jun. 2023)

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What is OUTsurance Group 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 EBIT by its Interest Expense. OUTsurance Group's EBIT for the six months ended in Jun. 2023 was R2,525 Mil. OUTsurance Group's Interest Expense for the six months ended in Jun. 2023 was R-32 Mil. OUTsurance Group's interest coverage for the quarter that ended in Jun. 2023 was 78.91. 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. OUTsurance Group Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

JSE:OUT' s Interest Coverage Range Over the Past 10 Years
Min: 7.24 Med: 72.68 Max: 2069.5
Current: 120.4

JSE:OUT's Interest Coverage is ranked better than
78.42% of 329 companies
in the Insurance industry
Industry Median: 14.62 vs JSE:OUT: 120.40

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

OUTsurance Group Interest Coverage Historical Data

The historical data trend for OUTsurance Group'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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OUTsurance Group Interest Coverage Chart

OUTsurance Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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62.36

36.46

48.32

196.07

120.40

OUTsurance Group Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Interest Coverage	Get a 7-Day Free Trial															-	3.73	-	286.38	78.91

Competitive Comparison of OUTsurance Group's Interest Coverage

For the Insurance - Diversified subindustry, OUTsurance Group'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.

OUTsurance Group's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, OUTsurance Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where OUTsurance Group's Interest Coverage falls into.

OUTsurance Group 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

OUTsurance Group'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, OUTsurance Group's Interest Expense was R-40 Mil. Its EBIT was R4,816 Mil. And its Long-Term Debt & Capital Lease Obligation was R80 Mil.

Interest Coverage	=	-1	*	EBIT (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	4816	/	-40
	=	120.40

OUTsurance Group's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the six months ended in Jun. 2023, OUTsurance Group's Interest Expense was R-32 Mil. Its EBIT was R2,525 Mil. And its Long-Term Debt & Capital Lease Obligation was R80 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	2525	/	-32
	=	78.91

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

OUTsurance Group (JSE:OUT) 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 .

OUTsurance Group Interest Coverage Related Terms

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

OUTsurance Group (JSE:OUT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » OUTsurance Group Ltd (JSE:OUT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1241 Embankment Road, Zwartkop Ext 7, Centurion, GT, ZAF, 0157

Website

https://www.outsurance.co.za

OUTsurance Group Ltd is a South African investment holding company with the objective of achieving superior returns for investors. The company mainly engaged in healthcare funding, wellness, and financial services industries, employee benefits, investment and savings, healthcare solutions and short-term insurance to individual clients, small and medium businesses, large companies, organizations and public enterprises through investments in Discovery Limited, MMI Holdings Limited, OUTsurance Holdings Limited and RMB-SI investments proprietary Ltd. It holds a number of brands such as Discovery Health, Discovery Life, Discovery Invest, Momentum, and Ping An Health. The company earns a majority of its revenue South Africa.