Harmoney (ASX:HMY) Interest Coverage : 0 (At Loss) (As of Dec. 2023)

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What is Harmoney 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. Harmoney's Operating Income for the six months ended in Dec. 2023 was A$-19.8 Mil. Harmoney's Interest Expense for the six months ended in Dec. 2023 was A$-25.9 Mil. did not have earnings to cover the interest expense. 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. Harmoney Corp 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 Harmoney's Interest Coverage or its related term are showing as below:

ASX:HMY' s Interest Coverage Range Over the Past 10 Years
Min: 0.66 Med: 0.8 Max: 0.8
Current: 0.66

ASX:HMY's Interest Coverage is ranked worse than
94.55% of 165 companies
in the Credit Services industry
Industry Median: 69.18 vs ASX:HMY: 0.66

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

Harmoney Interest Coverage Historical Data

The historical data trend for Harmoney'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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Harmoney Interest Coverage Chart

Harmoney Annual Data

Trend

Jun21

Jun22

Jun23

Interest Coverage

0.80

Harmoney Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			-	1.70	-	2.36	-

Competitive Comparison of Harmoney's Interest Coverage

For the Credit Services subindustry, Harmoney'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.

Harmoney's Interest Coverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Harmoney's Interest Coverage distribution charts can be found below:

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

Harmoney 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.

Harmoney's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Harmoney's Interest Expense was A$-39.5 Mil. Its Operating Income was A$31.6 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	31.625	/	-39.461
	=	0.80

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

Here, for the six months ended in Dec. 2023, Harmoney's Interest Expense was A$-25.9 Mil. Its Operating Income was A$-19.8 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.0 Mil.

Harmoney did not have earnings to cover the interest expense.

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

Harmoney (ASX:HMY) 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 .

Harmoney Interest Coverage Related Terms

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

Harmoney (ASX:HMY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Harmoney Corp Ltd (ASX:HMY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

110 Customs Street West, Level 3, Auckland, NTL, NZL, 1010

Website

https://www.harmoney.co.nz

Harmoney Corp Ltd operates in the consumer credit industry. The company provides online direct personal lending services in Australia and New Zealand. It offers personal loans, car loans, wedding loans, holiday loans, education loans, business loans, and home improvement loans.