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Kainos Group (FRA:1KG) Interest Coverage : 184.08 (As of Sep. 2024)


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What is Kainos 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. Kainos Group's Operating Income for the six months ended in Sep. 2024 was €35.9 Mil. Kainos Group's Interest Expense for the six months ended in Sep. 2024 was €-0.2 Mil. Kainos Group's interest coverage for the quarter that ended in Sep. 2024 was 184.08. 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. Kainos Group PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

FRA:1KG' s Interest Coverage Range Over the Past 10 Years
Min: 142.59   Med: 861.92   Max: 13255
Current: 142.59


FRA:1KG's Interest Coverage is ranked better than
71.3% of 1617 companies
in the Software industry
Industry Median: 27.91 vs FRA:1KG: 142.59

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


Kainos Group Interest Coverage Historical Data

The historical data trend for Kainos 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.

* Premium members only.

Kainos Group Interest Coverage Chart

Kainos Group Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 406.56 640.98 626.66 744.68 176.56

Kainos Group Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 963.00 592.59 380.19 116.33 184.08

Competitive Comparison of Kainos Group's Interest Coverage

For the Software - Application subindustry, Kainos 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.


Kainos Group's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Kainos Group's Interest Coverage distribution charts can be found below:

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



Kainos 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.

Kainos Group's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Kainos Group's Interest Expense was €-0.4 Mil. Its Operating Income was €68.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €5.7 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*68.857/-0.39
=176.56

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

Here, for the six months ended in Sep. 2024, Kainos Group's Interest Expense was €-0.2 Mil. Its Operating Income was €35.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €5.8 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*35.896/-0.195
=184.08

* 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.


Kainos Group  (FRA:1KG) 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 .


Kainos Group Interest Coverage Related Terms

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


Kainos Group Business Description

Traded in Other Exchanges
Address
4-6 Upper Crescent, Kainos House, Northern Ireland, Belfast, GBR, BT7 1NT
Kainos Group PLC provides information technology services, consulting, and software solutions. It is structured into three divisions namely Digital Services, Workday Services, and Workday Products. Digital Services which derives key revenue, includes full life cycle development and support of digital solutions for government and commercial customers. The Workday Services division specializes in deploying and supporting Workday's Finance, HR, and Planning products. The Workday Products division develops products that complement Workday such as the smart product suite, including Smart Test, Smart Audit, and Smart Shield. Geographically, the company's maximum revenue is generated from the United Kingdom and Ireland and the rest from North America, Central Europe, and the Rest of the world.

Kainos Group Headlines

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