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Meta Data (Meta Data) Interest Coverage : 3.79 (As of Aug. 2023)


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What is Meta Data 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. Meta Data's Operating Income for the six months ended in Aug. 2023 was $12.89 Mil. Meta Data's Interest Expense for the six months ended in Aug. 2023 was $-3.40 Mil. Meta Data's interest coverage for the quarter that ended in Aug. 2023 was 3.79. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Meta Data Ltd interest coverage is 3.56, which is low.

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

AIU' s Interest Coverage Range Over the Past 10 Years
Min: 3.56   Med: 802.66   Max: No Debt
Current: 3.56


AIU's Interest Coverage is ranked worse than
75.27% of 182 companies
in the Education industry
Industry Median: 15.35 vs AIU: 3.56

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


Meta Data Interest Coverage Historical Data

The historical data trend for Meta Data'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.

Meta Data Interest Coverage Chart

Meta Data Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 3.77 - - - 3.56

Meta Data Semi-Annual Data
Aug15 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
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 - - - 1.69 3.79

Competitive Comparison of Meta Data's Interest Coverage

For the Education & Training Services subindustry, Meta Data'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.


Meta Data's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Meta Data's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Meta Data's Interest Coverage falls into.



Meta Data 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.

Meta Data's Interest Coverage for the fiscal year that ended in Aug. 2023 is calculated as

Here, for the fiscal year that ended in Aug. 2023, Meta Data's Interest Expense was $-3.82 Mil. Its Operating Income was $13.60 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.21 Mil.

Interest Coverage=-1* Operating Income (A: Aug. 2023 )/Interest Expense (A: Aug. 2023 )
=-1*13.6/-3.818
=3.56

Meta Data's Interest Coverage for the quarter that ended in Aug. 2023 is calculated as

Here, for the six months ended in Aug. 2023, Meta Data's Interest Expense was $-3.40 Mil. Its Operating Income was $12.89 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.21 Mil.

Interest Coverage=-1* Operating Income (Q: Aug. 2023 )/Interest Expense (Q: Aug. 2023 )
=-1*12.892/-3.4
=3.79

* 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.


Meta Data  (NYSE:AIU) 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 .


Meta Data Interest Coverage Related Terms

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


Meta Data (Meta Data) Business Description

Traded in Other Exchanges
Address
45-47 Au Pui Wan Street, Flat H 3/F, Haribest Industrial Building, Sha Tin New Territorie, Hong Kong, HKG
Meta Data Ltd is engaged in artificial intelligent education service (AIE) and artificial intelligent universe (AIU) IAAS service. AIE is to build an intelligent training system based on intelligent training plat-from to provide the maximum immersive experience and the technical foundation for learning, and implementation in RT3D with 360-degree landscape. AIU IAAS service provides software & hardware infrastructure (IAAS) to Metaverse business operator or individual users. Company classified business segment into Artificial Intelligent Education (AIE) service and Artificial Intelligent Universe (AIU) IAAS service. The company generates all of its revenue in the PRC.
Executives
Yiheng Capital, Llc 10 percent owner 101 CALIFORNIA STREET, SUITE 2880, San Francisco CA 94111