Hochtief AG (Hochtief AG) Interest Coverage : 3.07 (As of Dec. 2023)

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What is Hochtief AG 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. Hochtief AG's Operating Income for the three months ended in Dec. 2023 was $153 Mil. Hochtief AG's Interest Expense for the three months ended in Dec. 2023 was $-50 Mil. Hochtief AG's interest coverage for the quarter that ended in Dec. 2023 was 3.07. The higher the ratio, the stronger the company's financial strength is.

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

HOCFF' s Interest Coverage Range Over the Past 10 Years
Min: 1.05 Med: 2.53 Max: 4.36
Current: 2.1

HOCFF's Interest Coverage is ranked worse than
80.24% of 1265 companies
in the Construction industry
Industry Median: 7.06 vs HOCFF: 2.10

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

Hochtief AG Interest Coverage Historical Data

The historical data trend for Hochtief AG'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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Hochtief AG Interest Coverage Chart

Hochtief AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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4.36

2.53

1.05

2.10

Hochtief AG Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	2.13	1.57	2.04	3.07

Competitive Comparison of Hochtief AG's Interest Coverage

For the Engineering & Construction subindustry, Hochtief AG'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.

Hochtief AG's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Hochtief AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hochtief AG's Interest Coverage falls into.

Hochtief AG 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.

Hochtief AG'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, Hochtief AG's Interest Expense was $-291 Mil. Its Operating Income was $610 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,299 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	610.424	/	-290.6
	=	2.10

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

Here, for the three months ended in Dec. 2023, Hochtief AG's Interest Expense was $-50 Mil. Its Operating Income was $153 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,299 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	153.188	/	-49.858
	=	3.07

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

Hochtief AG (OTCPK:HOCFF) 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 .

Hochtief AG Interest Coverage Related Terms

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

Hochtief AG (Hochtief AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Hochtief AG (OTCPK:HOCFF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

1HOT:Italy HOTd:UK 0EPW:UK HOT:Germany HOT:Austria

Address

Alfredstrasse 236, Essen, NW, DEU, 45133

Website

https://www.hochtief.com

Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where most of the company's assets are located.