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Arax Holdings (Arax Holdings) Interest Coverage : No Debt (1) (As of Jan. 2024)


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What is Arax Holdings 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. Arax Holdings's Operating Income for the three months ended in Jan. 2024 was $0.04 Mil. Arax Holdings's Interest Expense for the three months ended in Jan. 2024 was $0.00 Mil. Arax Holdings has no debt. The higher the ratio, the stronger the company's financial strength is.

(1) 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.

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


ARAT's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 30.23
* Ranked among companies with meaningful Interest Coverage only.

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


Arax Holdings Interest Coverage Historical Data

The historical data trend for Arax Holdings'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.

* Premium members only.

Arax Holdings Interest Coverage Chart

Arax Holdings Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct20 Oct21 Oct22 Oct23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only - No Debt No Debt No Debt No Debt

Arax Holdings Quarterly Data
Apr16 Jul16 Oct16 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 N/A N/A No Debt No Debt No Debt

Competitive Comparison of Arax Holdings's Interest Coverage

For the Software - Infrastructure subindustry, Arax Holdings'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.


Arax Holdings's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Arax Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Arax Holdings's Interest Coverage falls into.



Arax Holdings 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.

Arax Holdings's Interest Coverage for the fiscal year that ended in Oct. 2023 is calculated as

Here, for the fiscal year that ended in Oct. 2023, Arax Holdings's Interest Expense was $0.00 Mil. Its Operating Income was $0.01 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Arax Holdings had no debt (1).

Arax Holdings's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Arax Holdings's Interest Expense was $0.00 Mil. Its Operating Income was $0.04 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Arax Holdings had no debt (1).

* 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.


Arax Holdings  (OTCPK:ARAT) 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 .


Arax Holdings Interest Coverage Related Terms

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


Arax Holdings (Arax Holdings) Business Description

Traded in Other Exchanges
N/A
Address
30 North Gould Street, Sheridan, WY, USA, 82801
Arax Holdings Corp invests in TechFin and blockchain-based software solutions companies. The primary focus of Arax is to fuse decentralized solutions with financial service providers within multiple markets and communication networks to bring blockchain to everyday life.

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