Lendlease Group (ASX:LLC) Interest Coverage : 0.11 (As of Dec. 2023)

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What is Lendlease 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 Operating Income by its Interest Expense. Lendlease Group's Operating Income for the six months ended in Dec. 2023 was A$13 Mil. Lendlease Group's Interest Expense for the six months ended in Dec. 2023 was A$-122 Mil. Lendlease Group's interest coverage for the quarter that ended in Dec. 2023 was 0.11. 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. Lendlease Groups 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 Lendlease Group's Interest Coverage or its related term are showing as below:

ASX:LLC' s Interest Coverage Range Over the Past 10 Years
Min: 0.46 Med: 3.51 Max: 5.61
Current: 0.46

ASX:LLC's Interest Coverage is ranked worse than
93.39% of 1346 companies
in the Real Estate industry
Industry Median: 3.98 vs ASX:LLC: 0.46

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

Lendlease Group Interest Coverage Historical Data

The historical data trend for Lendlease 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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Lendlease Group Interest Coverage Chart

Lendlease Group Annual Data

Trend

Jun14

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Interest Coverage

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Lendlease Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	8.51	-	0.88	0.11

Competitive Comparison of Lendlease Group's Interest Coverage

For the Real Estate - Diversified subindustry, Lendlease 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.

Lendlease Group's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Lendlease Group's Interest Coverage distribution charts can be found below:

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

Lendlease 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 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.

Lendlease Group'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, Lendlease Group's Interest Expense was A$-158 Mil. Its Operating Income was A$-168 Mil. And its Long-Term Debt & Capital Lease Obligation was A$3,262 Mil.

Lendlease Group did not have earnings to cover the interest expense.

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

Here, for the six months ended in Dec. 2023, Lendlease Group's Interest Expense was A$-122 Mil. Its Operating Income was A$13 Mil. And its Long-Term Debt & Capital Lease Obligation was A$4,346 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	13	/	-122
	=	0.11

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

Lendlease Group (ASX:LLC) 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 .

Lendlease Group Interest Coverage Related Terms

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Lendlease Group (ASX:LLC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Lendlease Group (ASX:LLC) » Definitions » Interest Coverage

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LLESY:USA LLESF:USA

Address

Level 14, Tower Three, 300 Barangaroo Avenue, International Towers Sydney, Exchange Place, Barangaroo, Sydney, NSW, AUS, 2000

Website

https://www.lendlease.com

Lendlease's business comprises three segments: development, investments, and construction. Development accounted for more than half of EBITDA in 2020, and the future pipeline is so large it cannot be funded from its own balance sheet. The group is selling stakes in mature projects to its funds management clients. This sacrifices development profit, in return for management fees, reduced risk, and capital to accelerate new projects in the pipeline. Construction generates large revenues but slim margins. This business is retained to preserve expertise and scale for the development business. Lendlease sold its engineering and services business during the pandemic, but retains some risks, notably the Melbourne Metro project. It is also reducing its exposure to retirement living.

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