MetlifecareASX:MEQ 4 Interest Coverage is 6.64 as of Jun. 2020, which is 94% above its 10-year median of 3.42. GuruFocus rates ASX:MEQ with a GF Score™ of 4/100. The stock has 8 warning signs investors should review.
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. Metlifecare's
Operating Income
for the
six
months ended in Jun. 2020 was A$14.44 Mil. Metlifecare's Interest Expense for the
six
months ended in Jun. 2020 was A$-2.17 Mil.
Metlifecare's interest coverage for the quarter that ended in Jun. 2020 was 6.64.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies interest coverage is at least 5. Metlifecare Ltd interest coverage is 3.42, which is low.
The historical rank and industry rank for Metlifecare's Interest Coverage or its related term are showing as below:
ASX:MEQ'
s Interest Coverage Range Over the Past 10 Years
Min: 0.41 Med: 3.42 Max: 124.99
Current: 3.42
ASX:MEQ's Interest Coverage is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 7.98
vs ASX:MEQ: 3.42
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 .
Metlifecare Interest Coverage Related Terms
Metlifecare Interest Coverage Historical Data
* Premium members only.
The historical data trend for Metlifecare'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.
ASX:MEQ vs HCA, DVA, UHS: Interest Coverage Comparison
For the Medical Care Facilities subindustry, Metlifecare'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.
Metlifecare Interest Coverage vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Metlifecare's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Metlifecare'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.
Metlifecare (ASX:MEQ) has a Interest Coverage of 6.64 as of Jun. 2020. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Metlifecare and its competitors. This is 94% above median its historical median of 3.42. Over the past decade, Metlifecare's Interest Coverage has ranged from 0.41 to 124.99.
Is Metlifecare's Interest Coverage too high?
Metlifecare's current Interest Coverage of 6.64 is 94% above median its 10-year median of 3.42. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 124.99. The Healthcare Providers & Services industry median Interest Coverage is 7.98. Metlifecare's value of 6.64 is 16.8% below this industry median. Overall, Metlifecare has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Metlifecare's Interest Coverage compare to HCA and DVA?
Metlifecare's Interest Coverage of 6.64 can be compared against companies in the Healthcare Providers & Services industry. The industry median Interest Coverage is 7.98. Metlifecare's value of 6.64 is 16.8% below this benchmark. Historically, Metlifecare's own Interest Coverage has ranged from 0.41 to 124.99 over the past decade. While the company's 10-year median is 3.42 vs. the industry median of 7.98, Metlifecare has consistently been below the industry average. 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 Healthcare Providers & Services company?
The median Interest Coverage among Healthcare Providers & Services companies is 7.98, based on 453 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. Metlifecare's current Interest Coverage of 6.64 is 16.8% 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 Metlifecare and its competitors. For the Healthcare Providers & Services industry, the median Interest Coverage is 7.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Metlifecare's current Interest Coverage is 6.64, which is 94% above median its own 10-year median of 3.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Metlifecare stock overvalued right now?
Metlifecare (ASX:MEQ) has a current Interest Coverage of 6.64. The current Interest Coverage is 6.64, which is 94% above median its 10-year median of 3.42 and 16.8% below the Healthcare Providers & Services industry median of 7.98. Metlifecare's overall GF Score™ is 4/100 with 8 warning signs to review. 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 Metlifecare (ASX:MEQ), the current Interest Coverage is 6.64 as of Jun. 2020. 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.
Metlifecare Ltd operates retirement communities throughout New Zealand. It generates revenue from membership fees and rest home, hospital and service, and village fees. Metlifecare's membership fees are paid by residents of independent living units and serviced apartments and allow residents to use common facilities. Its largest single customer is the New Zealand government, which pays fees on behalf of residents eligible for government subsidized elderly care. The majority of Metlifecare's retirement villages are located in Auckland.
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