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Ghadir Investment Co (XTEH:GDIR1) Interest Coverage : 6.55 (As of Dec. 2018)


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What is Ghadir Investment Co 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. Ghadir Investment Co's Operating Income for the six months ended in Dec. 2018 was IRR77,630,661 Mil. Ghadir Investment Co's Interest Expense for the six months ended in Dec. 2018 was IRR-11,843,959 Mil. Ghadir Investment Co's interest coverage for the quarter that ended in Dec. 2018 was 6.55. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ghadir Investment Co's Interest Coverage or its related term are showing as below:


XTEH:GDIR1's Interest Coverage is not ranked *
in the Conglomerates industry.
Industry Median: 5.035
* 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.


Ghadir Investment Co Interest Coverage Historical Data

The historical data trend for Ghadir Investment Co'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.

Ghadir Investment Co Interest Coverage Chart

Ghadir Investment Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Interest Coverage
Get a 7-Day Free Trial 3.47 5.01 2.37 4.04 6.55

Ghadir Investment Co Semi-Annual Data
Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Interest Coverage Get a 7-Day Free Trial 3.47 5.01 2.37 4.04 6.55

Competitive Comparison of Ghadir Investment Co's Interest Coverage

For the Conglomerates subindustry, Ghadir Investment Co'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.


Ghadir Investment Co's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Ghadir Investment Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ghadir Investment Co's Interest Coverage falls into.



Ghadir Investment Co 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.

Ghadir Investment Co's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Ghadir Investment Co's Interest Expense was IRR-11,843,959 Mil. Its Operating Income was IRR77,630,661 Mil. And its Long-Term Debt & Capital Lease Obligation was IRR58,400,902 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2018 )/Interest Expense (A: Dec. 2018 )
=-1*77630661/-11843959
=6.55

Ghadir Investment Co's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the six months ended in Dec. 2018, Ghadir Investment Co's Interest Expense was IRR-11,843,959 Mil. Its Operating Income was IRR77,630,661 Mil. And its Long-Term Debt & Capital Lease Obligation was IRR58,400,902 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2018 )/Interest Expense (Q: Dec. 2018 )
=-1*77630661/-11843959
=6.55

* 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.


Ghadir Investment Co  (XTEH:GDIR1) 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 .


Ghadir Investment Co Interest Coverage Related Terms

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


Ghadir Investment Co (XTEH:GDIR1) Business Description

Traded in Other Exchanges
N/A
Address
No. 347 West Mirdamad, Tehran, IRN
Ghadir Investment Co is a holding company based in Iran. The company through its subsidiaries concentrates on investments and attracting investments into various businesses and project across the construction, cement, transportation, petrochemicals and power industry.

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