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Alpha Data PJSC (ADX:ALPHADATA) Interest Coverage : 37.91 (As of Dec. 2024)


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What is Alpha Data PJSC 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. Alpha Data PJSC's Operating Income for the six months ended in Dec. 2024 was د.إ130 Mil. Alpha Data PJSC's Interest Expense for the six months ended in Dec. 2024 was د.إ-3 Mil. Alpha Data PJSC's interest coverage for the quarter that ended in Dec. 2024 was 37.91. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Alpha Data PJSC's Interest Coverage or its related term are showing as below:

ADX:ALPHADATA' s Interest Coverage Range Over the Past 10 Years
Min: 37.91   Med: 76.17   Max: 213.07
Current: 37.91


ADX:ALPHADATA's Interest Coverage is ranked better than
55.34% of 1677 companies
in the Software industry
Industry Median: 26.09 vs ADX:ALPHADATA: 37.91

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


Alpha Data PJSC Interest Coverage Historical Data

The historical data trend for Alpha Data PJSC'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.

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Alpha Data PJSC Interest Coverage Chart

Alpha Data PJSC Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Interest Coverage
213.07 76.17 N/A 37.91

Alpha Data PJSC Semi-Annual Data
Dec21 Dec22 Dec23 Dec24
Interest Coverage 213.07 76.17 N/A 37.91

Competitive Comparison of Alpha Data PJSC's Interest Coverage

For the Information Technology Services subindustry, Alpha Data 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.


Alpha Data PJSC's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Alpha Data PJSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Alpha Data PJSC's Interest Coverage falls into.


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Alpha Data 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:

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.

Alpha Data PJSC's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Alpha Data PJSC's Interest Expense was د.إ-3 Mil. Its Operating Income was د.إ130 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ2 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*129.66/-3.42
=37.91

Alpha Data PJSC's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Alpha Data PJSC's Interest Expense was د.إ-3 Mil. Its Operating Income was د.إ130 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ2 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*129.66/-3.42
=37.91

* 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.

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


Alpha Data PJSC  (ADX:ALPHADATA) 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 .


Alpha Data PJSC Interest Coverage Related Terms

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Alpha Data PJSC Business Description

Traded in Other Exchanges
N/A
Address
Addax Tower, Level 26, Al Reem Island, Abu Dhabi, ARE
Alpha Data PJSC is a tech solutions provider specializing in IT infrastructure, cybersecurity, and digital transformation. The company offers services like system integration, cloud computing, and managed IT solutions. The company serves both government and private sectors. The company focuses on delivering new, customer-centric technology solutions.

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