Generation Development Group (ASX:GDG) Interest Coverage : 31.80 (As of Dec. 2024)

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What is Generation Development Group 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 EBIT by its Interest Expense. Generation Development Group's EBIT for the six months ended in Dec. 2024 was A$94.4 Mil. Generation Development Group's Interest Expense for the six months ended in Dec. 2024 was A$-3.0 Mil. Generation Development Group's interest coverage for the quarter that ended in Dec. 2024 was 31.80. 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. Generation Development Group Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Generation Development Group's Interest Coverage or its related term are showing as below:

ASX:GDG' s Interest Coverage Range Over the Past 10 Years
Min: 77.37 Med: 1644.34 Max: 4746.18
Current: 77.37

ASX:GDG's Interest Coverage is ranked better than
55.29% of 454 companies
in the Asset Management industry
Industry Median: 44.465 vs ASX:GDG: 77.37

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

Generation Development Group Interest Coverage Historical Data

The historical data trend for Generation Development Group'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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Generation Development Group Interest Coverage Chart

Generation Development Group Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Interest Coverage

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4,746.18

1,523.57

98.33

Generation Development Group Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Interest Coverage	Get a 7-Day Free Trial															320.64	2,782.89	15.81	156.37	31.80

Competitive Comparison of Generation Development Group's Interest Coverage

For the Asset Management subindustry, Generation Development Group'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.

Generation Development Group's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Generation Development Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Generation Development Group's Interest Coverage falls into.

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Generation Development Group 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

Generation Development Group's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Generation Development Group's Interest Expense was A$-2.9 Mil. Its EBIT was A$286.7 Mil. And its Long-Term Debt & Capital Lease Obligation was A$2.7 Mil.

Interest Coverage	=	-1	*	EBIT (A: Jun. 2024 )	/	Interest Expense (A: Jun. 2024 )
	=	-1	*	286.738	/	-2.916
	=	98.33

Generation Development Group's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Generation Development Group's Interest Expense was A$-3.0 Mil. Its EBIT was A$94.4 Mil. And its Long-Term Debt & Capital Lease Obligation was A$18.8 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	94.38	/	-2.968
	=	31.80

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

Generation Development Group (ASX:GDG) 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 .

Generation Development Group Interest Coverage Related Terms

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

Generation Development Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Generation Development Group Ltd (ASX:GDG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

447 Collins Street, Level 17, Melbourne, VIC, AUS, 3000

Website

https://www.gendevelopmentgroup.com.au

Founded in 1991, Generation originally operated as a pooled development fund, focusing on providing capital to businesses in financial services. Today, the firm is structured across three key business lines within wealth management. The first is through Generation Life, the market leader in investment bonds by in-flows, which offers tax-effective products, including investment bonds and annuities. The second business line is Lonsec, a prominent research and ratings provider to the Australian financial services sector, competing against Morningstar and Zenith. The third division provides managed account solutions, a result of the merger between Evidentia and Lonsec Investment Solutions, offering individually owned accounts professionally managed by experienced portfolio managers.

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