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. Argan's
Operating Income
for the
three
months ended in Jan. 2024 was $11.7 Mil. Argan's Interest Expense for the
three
months ended in Jan. 2024 was $0.0 Mil.
Argan has no debt.
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. Argan Inc has enough cash to cover all of its debt. Its financial situation is stable.
(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 Argan's Interest Coverage or its related term are showing as below:
AGX'
s Interest Coverage Range Over the Past 10 Years
Min: No Debt Med: No Debt Max: No Debt
Current: No Debt
AGX's Interest Coverage is ranked better than 99.52% of 1260
companies
in the Construction industry
Industry Median: 7.09
vs AGX: No Debt
The historical data trend for Argan'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.
Competitive Comparison of Argan's Interest Coverage
For the Engineering & Construction subindustry, Argan'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.
Argan's Interest Coverage Distribution in the Construction Industry
For the Construction industry and Industrials sector, Argan's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Argan's Interest Coverage falls into.
Argan 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:
* 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.
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 .
Argan Interest Coverage Related Terms
Thank you for viewing the detailed overview of Argan's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Argan Inc is a United States-based company that primarily operates in the power industry services segment through its wholly-owned subsidiaries. Gemma Power Systems and affiliates, one of Argan's subsidiaries, contributed almost all Argan's sales. GPS is a contractor that provides a full range of engineering, procurement, and construction services for power-generating projects. GPS' works encompass complete plant design, construction, electrical interconnection, plant testing, and commissioning. Argan also generates a small portion of sales from industrial fabrication and field services, as well as telecommunication infrastructure services. It operates in three segments: Power Services, Industrial Services, and Telecom Services, out of which Power Services derive majority revenue.
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