Alara ResourcesALULF Interest Coverage is 3.82 as of Dec. 2025. The stock has 8 warning signs investors should review. Among 1,318 Metals & Mining companies, Alara Resources ranks worse than 98.71% on this metric.
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. Alara Resources's
Operating Income
for the
six
months ended in Dec. 2025 was $8.88 Mil. Alara Resources's Interest Expense for the
six
months ended in Dec. 2025 was $-2.32 Mil.
Alara Resources's interest coverage for the quarter that ended in Dec. 2025 was 3.82.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Alara Resources Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Alara Resources's Interest Coverage or its related term are showing as below:
ALULF'
s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0.82
Current: 0.82
ALULF's Interest Coverage is ranked worse than 98.71% of 1318
companies
in the Metals & Mining industry
Industry Median: No Debt
vs ALULF: 0.82
Alara Resources (OTCPK:ALULF) 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 .
Alara Resources Interest Coverage Related Terms
Alara Resources Interest Coverage Historical Data
* Premium members only.
The historical data trend for Alara Resources'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.
Alara Resources Interest Coverage Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Alara Resources'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.
Alara Resources Interest Coverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Alara Resources's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Alara Resources's Interest Coverage falls into.
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:
* 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.
Alara Resources (ALULF) has a Interest Coverage of 3.82 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alara Resources and its competitors. According to the industry distribution chart, Alara Resources ranks #1301 out of 1318 companies in the Metals & Mining industry, placing it in the top 98.7%.
Is Alara Resources' Interest Coverage too high?
Alara Resources' current Interest Coverage is 3.82. The Metals & Mining industry median Interest Coverage is 10,000.00. Alara Resources' value of 3.82 is 100% below this industry median. Based on the distribution chart, Alara Resources ranks #1301 out of 1318 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers.
How does Alara Resources' Interest Coverage compare to competitors?
According to the Metals & Mining industry distribution chart, Alara Resources ranks #1301 out of 1318 companies for Interest Coverage. This places Alara Resources in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Alara Resources' value of 3.82 is 100% 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,318 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. Alara Resources's current Interest Coverage of 3.82 is 100% 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 Alara Resources and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alara Resources's current Interest Coverage is 3.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alara Resources stock overvalued right now?
Alara Resources (ALULF) has a current Interest Coverage of 3.82. The current Interest Coverage is 3.82 and 100% below the Metals & Mining industry median of 10,000.00. 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 Alara Resources (ALULF), the current Interest Coverage is 3.82 as of Dec. 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.
Alara Resources Ltd is an Australian-based precious and base metals producer and explorer. It is focused on operating the Al Wash-hi Majaza Copper-Gold mine and concentrate production facility in Oman. The company is also continuing exploration activities at its other Omani projects, including the Block 7 exploration licence under the Daris JV, the Mullaq and Al Ajal exploration licences under the Al Hadeetha JV, the Block 8 exploration license under the Awtad Copper-Power Metal JV and the recently awarded Block 22B exploration licence under the Al Hadeetha Mining LLC JV.
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