Atlas African Industries (LSE:AAI) Interest Coverage : No Debt ⁽¹⁾ (As of Jun. 2016)

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What is Atlas African Industries 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. Atlas African Industries's Operating Income for the six months ended in Jun. 2016 was £-1.46 Mil. Atlas African Industries's Interest Expense for the six months ended in Jun. 2016 was £0.00 Mil. Atlas African Industries 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 Atlas African Industries's Interest Coverage or its related term are showing as below:

LSE:AAI's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 6.62
* 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.

Atlas African Industries Interest Coverage Historical Data

The historical data trend for Atlas African Industries'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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Atlas African Industries Interest Coverage Chart

Atlas African Industries Annual Data

Trend

Dec11

Dec12

Jun13

Jun14

Interest Coverage

15.52

0.63

No Debt

Atlas African Industries Semi-Annual Data
	Dec11	Dec12	Dec13	Jun14	Dec14	Jun16
Interest Coverage	Get a 7-Day Free Trial			N/A	N/A	No Debt	-	No Debt

Competitive Comparison of Atlas African Industries's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, Atlas African Industries'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.

Atlas African Industries's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Atlas African Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Atlas African Industries's Interest Coverage falls into.

Atlas African Industries 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.

Atlas African Industries's Interest Coverage for the fiscal year that ended in Jun. 2014 is calculated as

Here, for the fiscal year that ended in Jun. 2014, Atlas African Industries's Interest Expense was £0.00 Mil. Its Operating Income was £-0.86 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.00 Mil.

Atlas African Industries had no debt ⁽¹⁾.

Atlas African Industries's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as

Here, for the six months ended in Jun. 2016, Atlas African Industries's Interest Expense was £0.00 Mil. Its Operating Income was £-1.46 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.00 Mil.

Atlas African Industries had no debt ⁽¹⁾.

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

Atlas African Industries (LSE:AAI) 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 .

Atlas African Industries Interest Coverage Related Terms

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

Atlas African Industries (LSE:AAI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Atlas African Industries Ltd (LSE:AAI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.atlassupport.com

Atlas African Industries Ltd, formerly known as Atlas Development & Support Services Ltd, was incorporated in Guernsey under the Law on December 5, 2012. The Company has a Joint Venture agreement with Ethiopian conglomerate Orchid Group to provide services in civil engineering and project management offering into industrial projects. The Company's operates in industrial division and support services division. Its 100% owned subsidiary, East Africa Packaging Holdings, is focused glass bottle manufacturing facility 45km north of Addis Ababa, Ethiopia known as the Chancho Project. The Chancho Project is in feasibility stage with a defined development strategy to construct and operate a glass bottle manufacturing facility. The JV provides services to clients in the natural resource development and infrastructure sectors, through civil engineering, project management, work-force accommodation solutions and on-going life support services.

Atlas African Industries (LSE:AAI) Headlines

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Atlas African Industries (LSE:AAI) Interest Coverage : No Debt (1) (As of Jun. 2016)