Sharjah Cement & Industrial Development Co (ADX:SCIDC) Interest Coverage : 0.79 (As of Mar. 2024)

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What is Sharjah Cement & Industrial Development Co 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. Sharjah Cement & Industrial Development Co's Operating Income for the three months ended in Mar. 2024 was د.إ6.5 Mil. Sharjah Cement & Industrial Development Co's Interest Expense for the three months ended in Mar. 2024 was د.إ-8.3 Mil. Sharjah Cement & Industrial Development Co's interest coverage for the quarter that ended in Mar. 2024 was 0.79. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sharjah Cement & Industrial Development Co's Interest Coverage or its related term are showing as below:

ADX:SCIDC' s Interest Coverage Range Over the Past 10 Years
Min: 0.03 Med: 1.99 Max: 5.05
Current: 0.38

ADX:SCIDC's Interest Coverage is ranked worse than
95.48% of 398 companies
in the Conglomerates industry
Industry Median: 5.11 vs ADX:SCIDC: 0.38

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

Sharjah Cement & Industrial Development Co Interest Coverage Historical Data

The historical data trend for Sharjah Cement & Industrial Development Co'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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Sharjah Cement & Industrial Development Co Interest Coverage Chart

Sharjah Cement & Industrial Development Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.96

0.03

Sharjah Cement & Industrial Development Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															-	-	0.13	1.84	0.79

Competitive Comparison of Sharjah Cement & Industrial Development Co's Interest Coverage

For the Conglomerates subindustry, Sharjah Cement & Industrial Development Co'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.

Sharjah Cement & Industrial Development Co's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Sharjah Cement & Industrial Development Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sharjah Cement & Industrial Development Co's Interest Coverage falls into.

Sharjah Cement & Industrial Development Co 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.

Sharjah Cement & Industrial Development Co'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, Sharjah Cement & Industrial Development Co's Interest Expense was د.إ-29.9 Mil. Its Operating Income was د.إ0.8 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ112.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	0.786	/	-29.892
	=	0.03

Sharjah Cement & Industrial Development Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Sharjah Cement & Industrial Development Co's Interest Expense was د.إ-8.3 Mil. Its Operating Income was د.إ6.5 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ125.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	6.489	/	-8.252
	=	0.79

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

Sharjah Cement & Industrial Development Co (ADX:SCIDC) 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 .

Sharjah Cement & Industrial Development Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Sharjah Cement & Industrial Development Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Sharjah Cement & Industrial Development Co (ADX:SCIDC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Sharjah Cement & Industrial Development Co (ADX:SCIDC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Bank Street, Al Hisn Tower, P.O. Box No. 2083, 14th Floor, Sharjah, ARE

Website

https://www.sharjahcement.com

Sharjah Cement & Industrial Development Co is engaged in the manufacturing and supply of cement, paper sacks, and plastic ropes. The Company invests its surplus funds in investment securities, private equities, and properties. The company operates from Sharjah, United Arab Emirates and sells its products within UAE and many other countries, including the Middle East, Africa, and Asia. The Company has two reportable segments, 1) Manufacturing segment includes cement, paper sacks and ropes products. 2) Investment segment includes investment and cash management for the company's own account. The investment segment is organised into two business units as follows: Investment and letting out properties in UAE and Investment in public and private equities and funds, majorly in GCC and Asia.

Sharjah Cement & Industrial Development Co (ADX:SCIDC) Headlines

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