Auto Trader Group (FRA:2UA) Interest Coverage : 207.26 (As of Sep. 2024)

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What is Auto Trader 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. Auto Trader Group's Operating Income for the six months ended in Sep. 2024 was €222.4 Mil. Auto Trader Group's Interest Expense for the six months ended in Sep. 2024 was €-1.1 Mil. Auto Trader Group's interest coverage for the quarter that ended in Sep. 2024 was 207.26. 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. Auto Trader Group PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

FRA:2UA' s Interest Coverage Range Over the Past 10 Years
Min: 1.7 Med: 35.49 Max: 176.88
Current: 142

FRA:2UA's Interest Coverage is ranked better than
68.42% of 304 companies
in the Interactive Media industry
Industry Median: 35.525 vs FRA:2UA: 142.00

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

Auto Trader Group Interest Coverage Historical Data

The historical data trend for Auto Trader 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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Auto Trader Group Interest Coverage Chart

Auto Trader Group Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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38.17

48.12

176.86

98.24

101.72

Auto Trader 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															147.98	70.62	96.08	107.43	207.26

Competitive Comparison of Auto Trader Group's Interest Coverage

For the Internet Content & Information subindustry, Auto Trader 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.

Auto Trader Group's Interest Coverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Auto Trader Group's Interest Coverage distribution charts can be found below:

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

Auto Trader 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.

Auto Trader 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, Auto Trader Group's Interest Expense was €-4.0 Mil. Its Operating Income was €404.4 Mil. And its Long-Term Debt & Capital Lease Obligation was €35.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	404.356	/	-3.975
	=	101.72

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

Here, for the six months ended in Sep. 2024, Auto Trader Group's Interest Expense was €-1.1 Mil. Its Operating Income was €222.4 Mil. And its Long-Term Debt & Capital Lease Obligation was €1.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	222.39	/	-1.073
	=	207.26

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

Auto Trader Group (FRA:2UA) 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 .

Auto Trader Group Interest Coverage Related Terms

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

Auto Trader Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Auto Trader Group PLC (FRA:2UA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ATDRY:USA ATDRF:USA AUTOl:UK AUTO:UK

Address

1 Tony Wilson Place, 4th Floor, Manchester, GBR, M15 4FN

Website

https://www.autotrader.co.uk

Auto Trader Group PLC is a digital automotive marketplace based in the UK, which provides trading channels for a range of vehicles such as cars, trucks, vans, bikes, and farm machinery, as well as relevant services such as car insurance, loans, valuations, and vehicle check services. The company generates revenue from three streams; Trade revenue from retailers and home traders advertising vehicles and using Auto Trader's products, which represent the majority of the company's income; the Consumer services revenue stems from private sellers placing advertisements and from the company's partners who provide services to consumers; and the Display advertising revenue is earned from manufacturers or their advertising agencies, which advertise their brand or services on the marketplace.

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