Anan Investment Holding PJSC (ADX:ANAN) Interest Coverage: 2.41 (As of Jun. 2019)


What is Anan Investment Holding PJSC Interest Coverage?

Anan Investment Holding PJSC ADX:ANAN -0.83% Interest Coverage is 2.41 as of Jun. 2019.

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. Anan Investment Holding PJSC's Operating Income for the six months ended in Jun. 2019 was د.إ140 Mil. Anan Investment Holding PJSC's Interest Expense for the six months ended in Jun. 2019 was د.إ-58 Mil. Anan Investment Holding PJSC's interest coverage for the quarter that ended in Jun. 2019 was 2.41. The higher the ratio, the stronger the company's financial strength is.

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


ADX:ANAN's Interest Coverage is not ranked *
in the Real Estate industry.
Industry Median: 4.225
* Ranked among companies with meaningful Interest Coverage only.

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

Anan Investment Holding PJSC  (ADX:ANAN) 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 .

Anan Investment Holding PJSC Interest Coverage Related Terms

Anan Investment Holding PJSC Interest Coverage Historical Data

* Premium members only.

The historical data trend for Anan Investment Holding 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.

Anan Investment Holding PJSC Interest Coverage Chart

Anan Investment Holding PJSC Annual Data
Trend Dec17 Dec18
Interest Coverage
0.00 4.34

Anan Investment Holding PJSC Semi-Annual Data
Dec17 Jun18 Dec18 Jun19
Interest Coverage N/A 5.63 3.82 2.41

Anan Investment Holding PJSC Interest Coverage Competitor Comparison

For the Real Estate - Development subindustry, Anan Investment Holding 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.

Anan Investment Holding PJSC Interest Coverage vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Anan Investment Holding PJSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Anan Investment Holding PJSC's Interest Coverage falls into.


Anan Investment Holding 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.

Anan Investment Holding PJSC's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Anan Investment Holding PJSC's Interest Expense was د.إ-83 Mil. Its Operating Income was د.إ359 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ653 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2018 )/Interest Expense (A: Dec. 2018 )
=-1*359.086/-82.714
=4.34

Anan Investment Holding PJSC's Interest Coverage for the quarter that ended in Jun. 2019 is calculated as

Here, for the six months ended in Jun. 2019, Anan Investment Holding PJSC's Interest Expense was د.إ-58 Mil. Its Operating Income was د.إ140 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ623 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2019 )/Interest Expense (Q: Jun. 2019 )
=-1*139.958/-57.993
=2.41

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.41 mean?
Anan Investment Holding PJSC (ADX:ANAN) has a Interest Coverage of 2.41 as of Jun. 2019. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Anan Investment Holding PJSC and its competitors.
Is Anan Investment Holding PJSC's Interest Coverage too high?
Anan Investment Holding PJSC's current Interest Coverage is 2.41. The Real Estate industry median Interest Coverage is 4.23. Anan Investment Holding PJSC's value of 2.41 is 43% below this industry median.
How does Anan Investment Holding PJSC's Interest Coverage compare to competitors?
Anan Investment Holding PJSC's Interest Coverage of 2.41 can be compared against companies in the Real Estate industry. The industry median Interest Coverage is 4.23. Anan Investment Holding PJSC's value of 2.41 is 43% 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 a Real Estate company?
The median Interest Coverage among Real Estate companies is 4.23, based on 1,302 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. Anan Investment Holding PJSC's current Interest Coverage of 2.41 is 43% 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 Anan Investment Holding PJSC and its competitors. For the Real Estate industry, the median Interest Coverage is 4.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Anan Investment Holding PJSC's current Interest Coverage is 2.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Anan Investment Holding PJSC stock overvalued right now?
Anan Investment Holding PJSC (ADX:ANAN) has a current Interest Coverage of 2.41. The current Interest Coverage is 2.41 and 43% below the Real Estate industry median of 4.23. 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 Anan Investment Holding PJSC (ADX:ANAN), the current Interest Coverage is 2.41 as of Jun. 2019. 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.

Anan Investment Holding PJSC Business Description

Address Kan'ad Street, Zone 1, Fotouh Al Khair Center, Tower No. 1, Floor No. 0, Office No. 2, Abu Dhabi, ARE
Anan Investment Holding PJSC is engaged in developing, investing in, and managing real estate properties. The company's operations are focused on real estate development. investment and marketing in various sectors, including tourism, industry, and others. Its project profile includes Wahat Alzaweya, Aryaf, Nasayem, Shamma Centre, Waha Living, Marya Boutique, and others.