Olam Group (FRA:K25) Interest Coverage : 1.38 (As of Dec. 2024)

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What is Olam 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. Olam Group's Operating Income for the six months ended in Dec. 2024 was €910 Mil. Olam Group's Interest Expense for the six months ended in Dec. 2024 was €-660 Mil. Olam Group's interest coverage for the quarter that ended in Dec. 2024 was 1.38. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Olam Group Ltd interest coverage is 1.54, which is low.

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

FRA:K25' s Interest Coverage Range Over the Past 10 Years
Min: 1.37 Med: 1.77 Max: 6.43
Current: 1.54

FRA:K25's Interest Coverage is ranked worse than
90.55% of 254 companies
in the Retail - Defensive industry
Industry Median: 8.605 vs FRA:K25: 1.54

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

Olam Group Interest Coverage Historical Data

The historical data trend for Olam 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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Olam Group Interest Coverage Chart

Olam Group Annual Data

Trend

Jun15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

Get a 7-Day Free Trial

5.01

6.43

2.82

1.68

1.56

Olam Group Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Interest Coverage	Get a 7-Day Free Trial															1.31	1.51	1.73	1.72	1.38

Competitive Comparison of Olam Group's Interest Coverage

For the Food Distribution subindustry, Olam 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.

Olam Group's Interest Coverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Olam Group's Interest Coverage distribution charts can be found below:

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

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Olam 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.

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

Here, for the fiscal year that ended in Dec. 2024, Olam Group's Interest Expense was €-1,243 Mil. Its Operating Income was €1,935 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,279 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	1934.798	/	-1243.181
	=	1.56

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

Here, for the six months ended in Dec. 2024, Olam Group's Interest Expense was €-660 Mil. Its Operating Income was €910 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,279 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	909.77	/	-660.052
	=	1.38

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

Olam Group (FRA:K25) 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 .

Olam Group Interest Coverage Related Terms

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

Olam Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Olam Group Ltd (FRA:K25) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

OLGPF:USA VC2:Singapore

Address

7 Straits View, No. 20-01, Marina One East Tower, Singapore, SGP, 018936

Website

https://www.olamgroup.com

Olam Group Ltd food and agri-business, supplying food ingredients, feed, and fibre to customers. The company, along with its subsidiaries operates in the following business segments: Olam Food Ingredients, Olam Global Agri, and the Remaining Olam Group. It generates maximum revenue from the Olam Global Agri segment, which is engaged in the origination, processing, trading, logistics, and distribution of grains, animal feed and protein, edible oil, rice, cotton, rubber, and wood products. It also provides commodity financial services. Geographically, the company derives a majority of its revenue from Asia, the Middle East, and Australia, and the rest from Africa, Europe, and the Americas.

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