ACTDW (ArcLight Clean Transition II) Interest Coverage: No Debt ⁽¹⁾ (As of Mar. 2022)

What is ArcLight Clean Transition II Interest Coverage?

ArcLight Clean Transition II ACTDW 20 Interest Coverage is No Debt ⁽¹⁾ as of Mar. 2022. GuruFocus rates ACTDW with a GF Score™ of 20/100. The stock has 1 warning sign investors should review.

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. ArcLight Clean Transition II's Operating Income for the three months ended in Mar. 2022 was $-1.39 Mil. ArcLight Clean Transition II's Interest Expense for the three months ended in Mar. 2022 was $0.00 Mil. ArcLight Clean Transition II has no debt. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

ArcLight Clean Transition Corp II has no debt.

(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 ArcLight Clean Transition II's Interest Coverage or its related term are showing as below:

ACTDW' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: No Debt
Current: No Debt

ACTDW's Interest Coverage is not ranked
in the Diversified Financial Services industry.
Industry Median: No Debt vs ACTDW: No Debt

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

ArcLight Clean Transition II (NAS:ACTDW) 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 .

ArcLight Clean Transition II Interest Coverage Related Terms

ArcLight Clean Transition II Interest Coverage Historical Data

* Premium members only.

The historical data trend for ArcLight Clean Transition II'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.

ArcLight Clean Transition II Interest Coverage Chart

ArcLight Clean Transition II Annual Data

Trend

Dec21

Interest Coverage

0.00

ArcLight Clean Transition II Quarterly Data
	Jan21	Jun21	Sep21	Dec21	Mar22
Interest Coverage	No Debt	No Debt	No Debt	No Debt	No Debt

ACTDW vs HCMA, ANAC, SDAC: Interest Coverage Comparison

For the Shell Companies subindustry, ArcLight Clean Transition II'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.

ArcLight Clean Transition II Interest Coverage vs Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, ArcLight Clean Transition II's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ArcLight Clean Transition II's Interest Coverage falls into.

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20GF Score

ArcLight Clean Transition Corp II ACTDW

Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.

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ArcLight Clean Transition II 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.

ArcLight Clean Transition II's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, ArcLight Clean Transition II's Interest Expense was $-0.46 Mil. Its Operating Income was $-4.95 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

ArcLight Clean Transition II did not have earnings to cover the interest expense.

ArcLight Clean Transition II's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, ArcLight Clean Transition II's Interest Expense was $0.00 Mil. Its Operating Income was $-1.39 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

ArcLight Clean Transition II had no debt ⁽¹⁾.

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

Frequently Asked Questions Learn more about Interest Coverage →

What does a Interest Coverage of No Debt <sup>(1)</sup> mean?

ArcLight Clean Transition II (ACTDW) has a Interest Coverage of No Debt ⁽¹⁾ as of Mar. 2022. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ArcLight Clean Transition II and its competitors.

Is ArcLight Clean Transition II's Interest Coverage too high?

ArcLight Clean Transition II's current Interest Coverage is No Debt ⁽¹⁾. Overall, ArcLight Clean Transition II has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.

How does ArcLight Clean Transition II's Interest Coverage compare to HCMA and ANAC?

ArcLight Clean Transition II's Interest Coverage of No Debt ⁽¹⁾ can be compared against companies in the Diversified Financial Services industry. The industry median Interest Coverage is 10,000.00. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Interest Coverage for a Diversified Financial Services company?

The median Interest Coverage among Diversified Financial Services companies is 10,000.00, based on 389 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage 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 Interest Coverage mean?

A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ArcLight Clean Transition II and its competitors. For the Diversified Financial Services industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ArcLight Clean Transition II's current Interest Coverage is No Debt ⁽¹⁾. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is ArcLight Clean Transition II stock overvalued right now?

ArcLight Clean Transition II (ACTDW) has a current Interest Coverage of No Debt ⁽¹⁾. The current Interest Coverage is No Debt ⁽¹⁾. ArcLight Clean Transition II's overall GF Score™ is 20/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Interest Coverage calculated?

Interest Coverage is calculated from a company's financial statements. For ArcLight Clean Transition II (ACTDW), the current Interest Coverage is No Debt ⁽¹⁾ as of Mar. 2022. 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.