VDM Group (ASX:VMG) Interest Coverage: 0 (At Loss) (As of Jun. 2024)


What is VDM Group Interest Coverage?

VDM Group ASX:VMG Interest Coverage is 0 (At Loss) as of Jun. 2024.

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. VDM Group's Operating Income for the six months ended in Jun. 2024 was A$-0.06 Mil. VDM Group's Interest Expense for the six months ended in Jun. 2024 was A$-0.33 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


ASX:VMG's Interest Coverage is not ranked *
in the Construction industry.
Industry Median: 7.865
* Ranked among companies with meaningful Interest Coverage only.

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

VDM Group  (ASX:VMG) 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 .

VDM Group Interest Coverage Related Terms

VDM Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for VDM 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.

VDM Group Interest Coverage Chart

VDM Group 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 0.00 0.00 0.00 0.00 0.00

VDM Group 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 0.00 0.00 0.00 0.00 0.00

ASX:VMG vs PWR, J, ACM: Interest Coverage Comparison

For the Engineering & Construction subindustry, VDM 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.

VDM Group Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, VDM Group's Interest Coverage distribution charts can be found below:

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


VDM 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.

VDM 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, VDM Group's Interest Expense was A$-0.56 Mil. Its Operating Income was A$-0.33 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.

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

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

Here, for the six months ended in Jun. 2024, VDM Group's Interest Expense was A$-0.33 Mil. Its Operating Income was A$-0.06 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.

VDM Group did not have earnings to cover the 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.

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

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0 (At Loss) mean?
VDM Group (ASX:VMG) has a Interest Coverage of 0 (At Loss) as of Jun. 2024. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on VDM Group and its competitors.
Is VDM Group's Interest Coverage too high?
VDM Group's current Interest Coverage is 0 (At Loss).
How does VDM Group's Interest Coverage compare to PWR and J?
VDM Group's Interest Coverage of 0 (At Loss) can be compared against companies in the Construction industry. The industry median Interest Coverage is 7.87. 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 Construction company?
The median Interest Coverage among Construction companies is 7.87, based on 1,354 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. 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 VDM Group and its competitors. For the Construction industry, the median Interest Coverage is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VDM Group's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VDM Group stock overvalued right now?
VDM Group (ASX:VMG) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). 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 VDM Group (ASX:VMG), the current Interest Coverage is 0 (At Loss) as of Jun. 2024. 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.

VDM Group Business Description

Address 420 Bagot Road, Unit 2, Subiaco, Subiaco, WA, AUS, 6008
VDM Group Ltd is an engineering and construction company. The company is an operationally diverse company arranged under two operating divisions: i) construction and ii) mining and exploration. Its activities involve exploration of the Cachoeiras do Binga copper project located in the Republic of Angola (Cachoeiras do Binga); exploration of the Cage Bengo Project located in the Republic of Angola (Cage Bengo); and review of new project opportunities.