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Serco Group (LSE:SRP) Interest Coverage : 7.08 (As of Jun. 2024)


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What is Serco 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 Operating Income by its Interest Expense. Serco Group's Operating Income for the six months ended in Jun. 2024 was £118 Mil. Serco Group's Interest Expense for the six months ended in Jun. 2024 was £-17 Mil. Serco Group's interest coverage for the quarter that ended in Jun. 2024 was 7.08. The higher the ratio, the stronger the company's financial strength is.

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

LSE:SRP' s Interest Coverage Range Over the Past 10 Years
Min: 1.45   Med: 5.42   Max: 8.99
Current: 5.99


LSE:SRP's Interest Coverage is ranked worse than
64.29% of 801 companies
in the Business Services industry
Industry Median: 13.39 vs LSE:SRP: 5.99

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


Serco Group Interest Coverage Historical Data

The historical data trend for Serco 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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Serco Group Interest Coverage Chart

Serco Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.35 6.26 8.92 8.99 6.58

Serco Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.72 6.79 8.53 4.75 7.08

Competitive Comparison of Serco Group's Interest Coverage

For the Specialty Business Services subindustry, Serco 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.


Serco Group's Interest Coverage Distribution in the Business Services Industry

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

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



Serco 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 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.

Serco Group'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, Serco Group's Interest Expense was £-29 Mil. Its Operating Income was £189 Mil. And its Long-Term Debt & Capital Lease Obligation was £469 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*188.8/-28.7
=6.58

Serco Group's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Serco Group's Interest Expense was £-17 Mil. Its Operating Income was £118 Mil. And its Long-Term Debt & Capital Lease Obligation was £621 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*118.3/-16.7
=7.08

* 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.


Serco Group  (LSE:SRP) 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 .


Serco Group Interest Coverage Related Terms

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


Serco Group Business Description

Traded in Other Exchanges
Address
16 Bartley Wood Business Park, Serco House, Bartley Way, Hook, Hampshire, GBR, RG27 9UY
Serco Group PLC helps governments and public-sector bodies deliver public services. The company generates revenue from four divisions. The U.K. & European local and regional government division provides hospital management welfare, business support operations, and defense services in the U.K. and Europe. The Americas division provides professional, defense, technology, and management services to U.S. and Canadian governments. The Asia-Pacific segment provides frontline services, defense, and citizen services in Australia, New Zealand, and Hong Kong. The Middle East division provides transport, defense, and health services in the Middle East. The company generates its key revenue from the U.K. & Europe divisions.

Serco Group Headlines

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