Investcorp Capital (ADX:ICAP) Interest Coverage : 53.50 (As of Jun. 2023)

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What is Investcorp Capital 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. Investcorp Capital's Operating Income for the six months ended in Jun. 2023 was د.إ393.0 Mil. Investcorp Capital's Interest Expense for the six months ended in Jun. 2023 was د.إ-7.3 Mil. Investcorp Capital's interest coverage for the quarter that ended in Jun. 2023 was 53.50. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Investcorp Capital Plc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Investcorp Capital's Interest Coverage or its related term are showing as below:

ADX:ICAP' s Interest Coverage Range Over the Past 10 Years
Min: 53.5 Med: 64.5 Max: 88
Current: 53.5

ADX:ICAP's Interest Coverage is ranked better than
53.6% of 444 companies
in the Asset Management industry
Industry Median: 42.64 vs ADX:ICAP: 53.50

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

Investcorp Capital Interest Coverage Historical Data

The historical data trend for Investcorp Capital'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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Investcorp Capital Interest Coverage Chart

Investcorp Capital Annual Data

Trend

Jun21

Jun22

Jun23

Interest Coverage

64.50

88.00

53.50

Investcorp Capital Semi-Annual Data
	Jun21	Jun22	Jun23
Interest Coverage	64.50	88.00	53.50

Competitive Comparison of Investcorp Capital's Interest Coverage

For the Asset Management subindustry, Investcorp Capital'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.

Investcorp Capital's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Investcorp Capital's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Investcorp Capital's Interest Coverage falls into.

Investcorp Capital 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.

Investcorp Capital's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Investcorp Capital's Interest Expense was د.إ-7.3 Mil. Its Operating Income was د.إ393.0 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ150.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	393.008	/	-7.346
	=	53.50

Investcorp Capital's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the six months ended in Jun. 2023, Investcorp Capital's Interest Expense was د.إ-7.3 Mil. Its Operating Income was د.إ393.0 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ150.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	393.008	/	-7.346
	=	53.50

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

Investcorp Capital (ADX:ICAP) 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 .

Investcorp Capital Interest Coverage Related Terms

Thank you for viewing the detailed overview of Investcorp Capital's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Investcorp Capital (ADX:ICAP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Investcorp Capital Plc (ADX:ICAP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Al Sila Tower 8th Floor, P.O. Box 36961, Abu Dhabi Global Market Square, Al Maryah Island, Abu Dhabi, ARE

Website

https://www.investcorp.com

Investcorp Capital Plc is a company whose main purpose is providing of capital and capital financing services in the alternative investments industry.