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Praemium (ASX:PPS) Interest Coverage : 241.71 (As of Jun. 2024)


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What is Praemium 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. Praemium's Operating Income for the six months ended in Jun. 2024 was A$14.26 Mil. Praemium's Interest Expense for the six months ended in Jun. 2024 was A$-0.06 Mil. Praemium's interest coverage for the quarter that ended in Jun. 2024 was 241.71. 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. Praemium Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

ASX:PPS' s Interest Coverage Range Over the Past 10 Years
Min: 7.91   Med: 5093.48   Max: No Debt
Current: 165.91


ASX:PPS's Interest Coverage is ranked better than
66.59% of 464 companies
in the Capital Markets industry
Industry Median: 20.33 vs ASX:PPS: 165.91

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


Praemium Interest Coverage Historical Data

The historical data trend for Praemium'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.

Praemium Interest Coverage Chart

Praemium Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.37 7.91 19.15 186.95 165.90

Praemium Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 33.25 109.29 340.88 88.79 241.71

Competitive Comparison of Praemium's Interest Coverage

For the Capital Markets subindustry, Praemium'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.


Praemium's Interest Coverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Praemium's Interest Coverage distribution charts can be found below:

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



Praemium 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.

Praemium'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, Praemium's Interest Expense was A$-0.12 Mil. Its Operating Income was A$19.41 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1.42 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*19.41/-0.117
=165.90

Praemium's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Praemium's Interest Expense was A$-0.06 Mil. Its Operating Income was A$14.26 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1.42 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*14.261/-0.059
=241.71

* 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.


Praemium  (ASX:PPS) 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 .


Praemium Interest Coverage Related Terms

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


Praemium Business Description

Traded in Other Exchanges
N/A
Address
367 Collins Street, Level 19, Melbourne, VIC, AUS, 3000
Praemium Ltd is a provider of portfolio administration, investment platforms, and financial planning tools to the wealth management industry. Its clients are predominantly firms that provide financial advice to investors, namely financial advisers, brokers, accountants, investment managers, banks, and other financial providers such as superannuation administrators. The company has two reportable segments: Australia, and International. It derives majority of its revenues from Australia.

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