Ghitha Holding PJSC (ADX:GHITHA) Interest Coverage: 4.10 (As of Mar. 2025)


ADX:GHITHA Ghitha Holding PJSC ADX:GHITHA
64 GF Score
Price د.إ12.30
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What is Ghitha Holding PJSC Interest Coverage?

Ghitha Holding PJSC ADX:GHITHA +6.77% 64 Interest Coverage is 4.10 as of Mar. 2025. GuruFocus rates ADX:GHITHA with a GF Score™ of 64/100.

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. Ghitha Holding PJSC's Operating Income for the three months ended in Mar. 2025 was د.إ77 Mil. Ghitha Holding PJSC's Interest Expense for the three months ended in Mar. 2025 was د.إ-19 Mil. Ghitha Holding PJSC's interest coverage for the quarter that ended in Mar. 2025 was 4.10. The higher the ratio, the stronger the company's financial strength is.

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


ADX:GHITHA's Interest Coverage is not ranked *
in the Retail - Defensive industry.
Industry Median: 8.79
* 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.


Ghitha Holding PJSC  (ADX:GHITHA) 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 .


Ghitha Holding PJSC Interest Coverage Related Terms


Ghitha Holding PJSC Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ghitha 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.

Ghitha Holding PJSC Interest Coverage Chart

Ghitha Holding PJSC Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial 28.70 16.61 12.70 2.75 2.19

Ghitha Holding PJSC Quarterly Data
Dec19 Sep20 Dec20 Jun21 Sep21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Interest Coverage 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 3.85 1.81 1.27 2.41 4.10

ADX:GHITHA vs SYY, USFD, PFGC: Interest Coverage Comparison

For the Food Distribution subindustry, Ghitha 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.


Ghitha Holding PJSC Interest Coverage vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Ghitha Holding PJSC's Interest Coverage distribution charts can be found below:

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


ADX:GHITHA
64GF Score
Ghitha Holding PJSC ADX:GHITHA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Ghitha 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.

Ghitha Holding 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, Ghitha Holding PJSC's Interest Expense was د.إ-75 Mil. Its Operating Income was د.إ164 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ579 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*163.594/-74.635
=2.19

Ghitha Holding PJSC's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Ghitha Holding PJSC's Interest Expense was د.إ-19 Mil. Its Operating Income was د.إ77 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ783 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*76.81/-18.753
=4.10

* 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 4.10 mean?
Ghitha Holding PJSC (ADX:GHITHA) has a Interest Coverage of 4.10 as of Mar. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ghitha Holding PJSC and its competitors.
Is Ghitha Holding PJSC's Interest Coverage too high?
Ghitha Holding PJSC's current Interest Coverage is 4.10. The Retail - Defensive industry median Interest Coverage is 8.79. Ghitha Holding PJSC's value of 4.10 is 53.4% below this industry median. Overall, Ghitha Holding PJSC has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Ghitha Holding PJSC's Interest Coverage compare to SYY and USFD?
Ghitha Holding PJSC's Interest Coverage of 4.10 can be compared against companies in the Retail - Defensive industry. The industry median Interest Coverage is 8.79. Ghitha Holding PJSC's value of 4.10 is 53.4% 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 a Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 8.79, based on 253 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. Ghitha Holding PJSC's current Interest Coverage of 4.10 is 53.4% 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 Ghitha Holding PJSC and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 8.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ghitha Holding PJSC's current Interest Coverage is 4.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ghitha Holding PJSC stock overvalued right now?
Ghitha Holding PJSC (ADX:GHITHA) has a current Interest Coverage of 4.10. The current Interest Coverage is 4.10 and 53.4% below the Retail - Defensive industry median of 8.79. Ghitha Holding PJSC's overall GF Score™ is 64/100. 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 Ghitha Holding PJSC (ADX:GHITHA), the current Interest Coverage is 4.10 as of Mar. 2025. 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.

Ghitha Holding PJSC Business Description

Address Al Faymah Street, PO Box 53314, Business Avenue Tower, Unit 1501, Al Danah, Abu Dhabi, ARE
Ghitha Holding PJSC is engaged in trading, re-packaging, and distribution of food products. Its segments include Fruits and vegetables, Dairy and protein, Trading and distribution, Edible oil and fats, Investment, and Others. The majority of its revenue is generated from the Dairy and protein segment.
64GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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