Prosperity Resources (ASX:PSP) Effective Interest Rate on Debt %: 8.91% (As of Jun. 2016)


What is Prosperity Resources Effective Interest Rate on Debt %?

Prosperity Resources ASX:PSP Effective Interest Rate on Debt % is 8.91% as of Jun. 2016. The stock has 4 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Prosperity Resources's annualized positive value of Interest Expense for the quarter that ended in Jun. 2016 was A$0.08 Mil. Prosperity Resources's average total debt for the quarter that ended in Jun. 2016 was A$0.90 Mil. Therefore, Prosperity Resources's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2016 was 8.91%.

Prosperity Resources  (ASX:PSP) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Prosperity Resources Effective Interest Rate on Debt % Related Terms

Prosperity Resources Effective Interest Rate on Debt % Historical Data

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The historical data trend for Prosperity Resources's Effective Interest Rate on Debt % 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.

Prosperity Resources Effective Interest Rate on Debt % Chart

Prosperity Resources Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 61.24 22.35 2.09 1.49 7.14

Prosperity Resources Semi-Annual Data
Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16
Effective Interest Rate on Debt % 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 1.88 1.08 4.80 8.91

Prosperity Resources Effective Interest Rate on Debt % Competitor Comparison

For the Gold subindustry, Prosperity Resources's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.

Prosperity Resources Effective Interest Rate on Debt % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Prosperity Resources's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Prosperity Resources's Effective Interest Rate on Debt % falls into.


Prosperity Resources Effective Interest Rate on Debt % Calculation

Prosperity Resources's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jun. 2016 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2015 )+Total Debt  (A: Jun. 2016 ))/ count )
=-1  *  -0.06/( (0.776+0.905)/ 2 )
=-1  *  -0.06/0.8405
=7.14 %

where

Total Debt  (A: Jun. 2015 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 0.776
=0.776

Total Debt  (A: Jun. 2016 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 0.905
=0.905

Prosperity Resources's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2016 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2015 )+Total Debt  (Q: Jun. 2016 ))/ count )
=-1  *  -0.08/( (0.891+0.905)/ 2 )
=-1  *  -0.08/0.898
=8.91 %

where

Total Debt  (Q: Dec. 2015 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 0.891
=0.891

Total Debt  (Q: Jun. 2016 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 0.905
=0.905

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Jun. 2016) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 8.91% mean?
Prosperity Resources (ASX:PSP) has a Effective Interest Rate on Debt % of 8.91% as of Jun. 2016. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Prosperity Resources and its competitors.
Is Prosperity Resources' Effective Interest Rate on Debt % too high?
Prosperity Resources' current Effective Interest Rate on Debt % is 8.91%.
How does Prosperity Resources' Effective Interest Rate on Debt % compare to competitors?
Prosperity Resources' Effective Interest Rate on Debt % of 8.91% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Metals & Mining company?
A good Effective Interest Rate on Debt % depends on the Metals & Mining industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Prosperity Resources and its competitors. Prosperity Resources's current Effective Interest Rate on Debt % is 8.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prosperity Resources stock overvalued right now?
Prosperity Resources (ASX:PSP) has a current Effective Interest Rate on Debt % of 8.91%. The current Effective Interest Rate on Debt % is 8.91%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Prosperity Resources (ASX:PSP), the current Effective Interest Rate on Debt % is 8.91% as of Jun. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Prosperity Resources Business Description

Prosperity Resources Limited (PSP) is an exploration company for gold and iron ore in the Murchison greenstone belt of Western Australia and copper/gold in the Tennant Creek Goldfield of Northern Territory.