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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. Abu Dhabi Ship Building PJSC's
Operating Income
for the
six
months ended in Dec. 2023 was د.إ30 Mil. Abu Dhabi Ship Building PJSC's Interest Expense for the
six
months ended in Dec. 2023 was د.إ-4 Mil.
Abu Dhabi Ship Building PJSC's interest coverage for the quarter that ended in Dec. 2023 was 8.06.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Abu Dhabi Ship Building PJSC's Interest Coverage or its related term are showing as below:
ADX:ADSB's Interest Coverage is not ranked *
in the Aerospace & Defense industry.
Industry Median: 8.4 * Ranked among companies with meaningful Interest Coverage only.
Abu Dhabi Ship Building PJSC (ADX:ADSB) 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 .
Abu Dhabi Ship Building PJSC Interest Coverage Related Terms
Abu Dhabi Ship Building PJSC Interest Coverage Historical Data
* 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.
Abu Dhabi Ship Building PJSC Interest Coverage Chart
ADX:ADSB vs GE, RTX, BA: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Abu Dhabi Ship Building PJSC'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.
Abu Dhabi Ship Building PJSC Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Abu Dhabi Ship Building PJSC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Abu Dhabi Ship Building PJSC's Interest Coverage falls into.
Abu Dhabi Ship Building PJSC 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:
* 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.
Abu Dhabi Ship Building PJSC (ADX:ADSB) has a Interest Coverage of 8.06 as of Dec. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Abu Dhabi Ship Building PJSC and its competitors.
Is Abu Dhabi Ship Building PJSC's Interest Coverage too high?
Abu Dhabi Ship Building PJSC's current Interest Coverage is 8.06. The Aerospace & Defense industry median Interest Coverage is 8.40. Abu Dhabi Ship Building PJSC's value of 8.06 is 4% below this industry median. Overall, Abu Dhabi Ship Building PJSC has a GF Score™ of 5/100, reflecting its overall financial health beyond just this single metric.
How does Abu Dhabi Ship Building PJSC's Interest Coverage compare to GE and RTX?
Abu Dhabi Ship Building PJSC's Interest Coverage of 8.06 can be compared against companies in the Aerospace & Defense industry. The industry median Interest Coverage is 8.40. Abu Dhabi Ship Building PJSC's value of 8.06 is 4% below this benchmark. 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 an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.40, based on 243 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. Abu Dhabi Ship Building PJSC's current Interest Coverage of 8.06 is 4% below the industry median. 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 Abu Dhabi Ship Building PJSC and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abu Dhabi Ship Building PJSC's current Interest Coverage is 8.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abu Dhabi Ship Building PJSC stock overvalued right now?
Abu Dhabi Ship Building PJSC (ADX:ADSB) has a current Interest Coverage of 8.06. The current Interest Coverage is 8.06 and 4% below the Aerospace & Defense industry median of 8.40. Abu Dhabi Ship Building PJSC's overall GF Score™ is 5/100. 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 Abu Dhabi Ship Building PJSC (ADX:ADSB), the current Interest Coverage is 8.06 as of Dec. 2023. 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.
Abu Dhabi Ship Building PJSC is a shipbuilder and support services contractor locally and internationally. Its operating segments include New Build and Engineering; Small Boats; Military Repairs and Maintenance; Commercial Repairs and Maintenance and Combat System Integration. It generates maximum revenue from the New Build and Engineering services segment. It provides the design, engineering, research and development, construction, commissioning, test and trials, ILS, upgrades, conversions, and consultancy services for military, commercial, and leisure vessels in any construction material.
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