Iluka Resources (Iluka Resources) Interest Coverage : 40.71 (As of Dec. 2023)

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What is Iluka Resources 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. Iluka Resources's Operating Income for the six months ended in Dec. 2023 was $109.0 Mil. Iluka Resources's Interest Expense for the six months ended in Dec. 2023 was $-2.7 Mil. Iluka Resources's interest coverage for the quarter that ended in Dec. 2023 was 40.71. 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. Iluka Resources Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

ILKAY' s Interest Coverage Range Over the Past 10 Years
Min: 1.33 Med: 28.79 Max: 121.8
Current: 59.47

ILKAY's Interest Coverage is ranked worse than
69.2% of 1344 companies
in the Metals & Mining industry
Industry Median: No Debt vs ILKAY: 59.47

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

Iluka Resources Interest Coverage Historical Data

The historical data trend for Iluka Resources'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.

Iluka Resources Interest Coverage Chart

Iluka Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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26.85

28.79

90.93

121.79

59.47

Iluka Resources Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	62.42	-	79.25	40.71

Competitive Comparison of Iluka Resources's Interest Coverage

For the Other Industrial Metals & Mining subindustry, Iluka Resources'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.

Iluka Resources's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Iluka Resources's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Iluka Resources's Interest Coverage falls into.

Iluka Resources 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.

Iluka Resources'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, Iluka Resources's Interest Expense was $-5.2 Mil. Its Operating Income was $310.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $103.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	310.509	/	-5.221
	=	59.47

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

Here, for the six months ended in Dec. 2023, Iluka Resources's Interest Expense was $-2.7 Mil. Its Operating Income was $109.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $103.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	108.969	/	-2.677
	=	40.71

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

Iluka Resources (OTCPK:ILKAY) 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 .

Iluka Resources Interest Coverage Related Terms

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

Iluka Resources (Iluka Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Iluka Resources Ltd (OTCPK:ILKAY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ILKAF:USA ILZ:Germany ILU:Australia

Address

240 St Georges Terrace, Level 17, Perth, WA, AUS, 6000

Website

https://www.iluka.com

Iluka Resources is a leading global mineral sands miner. It is the largest global producer of zircon, and one of the largest producers of titanium dioxide feedstocks (rutile, synthetic rutile). Low zircon costs are underpinned by the high-grade Jacinth-Ambrosia mine in South Australia but reserve life is less than 10 years. A 20% shareholding in Deterra Royalties brings exposure to the high-quality Mining Area C iron ore royalty. Iluka is constructing its West Balranald rutile and zircon mine while also building a rare-earth refinery at Eneabba, which will be able to process Iluka's existing monazite stockpile as well as feed from third parties and future Iluka projects.