Indofood Agri Resources (Indofood Agri Resources) Interest Coverage

: 4.81 (As of Dec. 2023)

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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. Indofood Agri Resources's Operating Income for the six months ended in Dec. 2023 was $88 Mil. Indofood Agri Resources's Interest Expense for the six months ended in Dec. 2023 was $-18 Mil. Indofood Agri Resources's interest coverage for the quarter that ended in Dec. 2023 was 4.81. 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. Indofood Agri Resources Ltd interest coverage is 3.3, which is low.

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

INDFY' s Interest Coverage Range Over the Past 10 Years
Min: 0.73 Med: 2.89 Max: 5.22
Current: 3.3

INDFY's Interest Coverage is ranked worse than
71.25% of 1374 companies
in the Consumer Packaged Goods industry
Industry Median: 8.41 vs INDFY: 3.30

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

Indofood Agri Resources Interest Coverage Historical Data

The historical data trend for Indofood Agri 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.

Indofood Agri Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.73

2.23

5.22

5.03

3.33

Indofood Agri 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																7.39	4.81	5.24	1.97	4.81

Competitive Comparison

For the Packaged Foods subindustry, Indofood Agri 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.

Indofood Agri Resources Interest Coverage Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Indofood Agri Resources's Interest Coverage distribution charts can be found below:

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

Indofood Agri 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.

Indofood Agri 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, Indofood Agri Resources's Interest Expense was $-38 Mil. Its Operating Income was $128 Mil. And its Long-Term Debt & Capital Lease Obligation was $61 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	127.652	/	-38.354
	=	3.33

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

Here, for the six months ended in Dec. 2023, Indofood Agri Resources's Interest Expense was $-18 Mil. Its Operating Income was $88 Mil. And its Long-Term Debt & Capital Lease Obligation was $61 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	88.168	/	-18.317
	=	4.81

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

Indofood Agri Resources (OTCPK:INDFY) 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 .

Indofood Agri Resources Interest Coverage Related Terms

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

Indofood Agri Resources (Indofood Agri Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Indofood Agri Resources Ltd (OTCPK:INDFY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

5JS:Singapore ZVF:Germany

Address

8 Eu Tong Sen Street, No. 16-96/97 The Central, Singapore, SGP, 059818

Website

http://www.indofoodagri.com

Indofood Agri Resources Ltd is engaged in agribusiness. The principal activities of the firm include research and development, oil palm seed breeding, cultivation of oil palm plantations, production and refining of crude palm oil, sugarcane and industrial timber plantations and, marketing and selling end products. It operates through following segments: Plantations, Edible Oils and Fats and others segment. The Plantations segment develops and maintains oil palm, rubber and sugar cane plantations, and other business activities relating to palm oil, rubber and sugar cane processing, marketing, and selling. The Edible Oils and Fats segment which generates majority revenue produces, markets, and sells edible oil, margarine, shortening, and other related products and its derivative products.

Indofood Agri Resources (Indofood Agri Resources) Headlines

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