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Gulf Pharmaceutical Industries PSC (ADX:JULPHAR) Interest Coverage : 2.13 (As of Mar. 2025)


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What is Gulf Pharmaceutical Industries PSC 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. Gulf Pharmaceutical Industries PSC's Operating Income for the three months ended in Mar. 2025 was د.إ32 Mil. Gulf Pharmaceutical Industries PSC's Interest Expense for the three months ended in Mar. 2025 was د.إ-15 Mil. Gulf Pharmaceutical Industries PSC's interest coverage for the quarter that ended in Mar. 2025 was 2.13. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Gulf Pharmaceutical Industries PSC's Interest Coverage or its related term are showing as below:

ADX:JULPHAR' s Interest Coverage Range Over the Past 10 Years
Min: 1.03   Med: 4.9   Max: 8.32
Current: 1.33


ADX:JULPHAR's Interest Coverage is ranked worse than
93.41% of 91 companies
in the Medical Distribution industry
Industry Median: 7.15 vs ADX:JULPHAR: 1.33

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


Gulf Pharmaceutical Industries PSC Interest Coverage Historical Data

The historical data trend for Gulf Pharmaceutical Industries PSC'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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Gulf Pharmaceutical Industries PSC Interest Coverage Chart

Gulf Pharmaceutical Industries PSC Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 1.03

Gulf Pharmaceutical Industries PSC Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 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 Premium Member Only Premium Member Only Premium Member Only 1.64 0.83 0.21 2.28 2.13

Competitive Comparison of Gulf Pharmaceutical Industries PSC's Interest Coverage

For the Medical Distribution subindustry, Gulf Pharmaceutical Industries PSC'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.


Gulf Pharmaceutical Industries PSC's Interest Coverage Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Gulf Pharmaceutical Industries PSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gulf Pharmaceutical Industries PSC's Interest Coverage falls into.


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Gulf Pharmaceutical Industries PSC 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.

Gulf Pharmaceutical Industries PSC'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, Gulf Pharmaceutical Industries PSC's Interest Expense was د.إ-71 Mil. Its Operating Income was د.إ73 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ621 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*72.8/-70.8
=1.03

Gulf Pharmaceutical Industries PSC's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Gulf Pharmaceutical Industries PSC's Interest Expense was د.إ-15 Mil. Its Operating Income was د.إ32 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ471 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*32.3/-15.2
=2.13

* 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.


Gulf Pharmaceutical Industries PSC  (ADX:JULPHAR) 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 .


Gulf Pharmaceutical Industries PSC Interest Coverage Related Terms

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


Gulf Pharmaceutical Industries PSC Business Description

Traded in Other Exchanges
N/A
Address
Airport Road, P.O. Box 997, Digdaga, Ras Al Khaimah, ARE
Gulf Pharmaceutical Industries PSC is in the business of manufacturing and selling medicines, drugs, and various other types of pharmaceutical and medical compounds in addition to cosmetic compounds. The company operates in four segments: Manufacturing, Planet, Investments, and others. The majority of its revenue is generated from the planet segment. The geographical segments are UAE, Other GCC countries, and Other countries.

Gulf Pharmaceutical Industries PSC Headlines

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