Response Plus Holding (ADX:RPM) Interest Coverage : 54.93 (As of Dec. 2023)

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What is Response Plus Holding 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. Response Plus Holding's Operating Income for the six months ended in Dec. 2023 was د.إ23.2 Mil. Response Plus Holding's Interest Expense for the six months ended in Dec. 2023 was د.إ-0.4 Mil. Response Plus Holding's interest coverage for the quarter that ended in Dec. 2023 was 54.93. 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. Response Plus Holding has enough cash to cover all of its debt. Its financial situation is stable.

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

ADX:RPM' s Interest Coverage Range Over the Past 10 Years
Min: 43.3 Med: 61.1 Max: 87.37
Current: 61.1

ADX:RPM's Interest Coverage is ranked better than
81.42% of 759 companies
in the Oil & Gas industry
Industry Median: 6.73 vs ADX:RPM: 61.10

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

Response Plus Holding Interest Coverage Historical Data

The historical data trend for Response Plus Holding'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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Response Plus Holding Interest Coverage Chart

Response Plus Holding Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Interest Coverage

87.37

43.30

61.10

Response Plus Holding Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			93.19	62.94	25.63	67.69	54.93

Competitive Comparison of Response Plus Holding's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, Response Plus Holding'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.

Response Plus Holding's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Response Plus Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Response Plus Holding's Interest Coverage falls into.

Response Plus Holding 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.

Response Plus Holding's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Response Plus Holding's Interest Expense was د.إ-0.8 Mil. Its Operating Income was د.إ50.0 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ0.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	50.042	/	-0.819
	=	61.10

Response Plus Holding's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Response Plus Holding's Interest Expense was د.إ-0.4 Mil. Its Operating Income was د.إ23.2 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ0.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	23.237	/	-0.423
	=	54.93

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

Response Plus Holding (ADX:RPM) 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 .

Response Plus Holding Interest Coverage Related Terms

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

Response Plus Holding (ADX:RPM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Response Plus Holding (ADX:RPM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Burjeel Medical City, MBZ City, P.O. Box 130336, Zone D, 3rd Floor, Abu Dhabi, ARE

Website

https://rpm.ae

Response Plus Holding is engaged in the supply of manpower and medical equipment and the management of hospitals, clinics, and medical centers. The company's business activities are; healthcare services, investment in the healthcare-related business, investing in real estate and movables necessary for carrying out its activities, and management of affiliated companies. Geographically, it operates in the following markets; United Arab Emirates, Kingdom of Saudi Arabia, and Sultanate of Oman. Out of which a majority of its revenue comes from the United Arab Emirates market.