AYO Technology Solutions (JSE:AYO) Interest Coverage: 0 (At Loss) (As of Feb. 2025)

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JSE:AYO AYO Technology Solutions Ltd JSE:AYO
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What is AYO Technology Solutions Interest Coverage?

AYO Technology Solutions JSE:AYO 11 Interest Coverage is 0 (At Loss) as of Feb. 2025. GuruFocus rates JSE:AYO with a GF Score™ of 11/100.

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. AYO Technology Solutions's Operating Income for the six months ended in Feb. 2025 was R-132 Mil. AYO Technology Solutions's Interest Expense for the six months ended in Feb. 2025 was R0 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 AYO Technology Solutions's Interest Coverage or its related term are showing as below:


JSE:AYO's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 26.18
* 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.


AYO Technology Solutions  (JSE:AYO) 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 .


AYO Technology Solutions Interest Coverage Related Terms


AYO Technology Solutions Interest Coverage Historical Data

* Premium members only.

The historical data trend for AYO Technology Solutions'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.

AYO Technology Solutions Interest Coverage Chart

AYO Technology Solutions Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

AYO Technology Solutions Semi-Annual Data
Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25
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 0.00 0.00 0.00 0.00 0.00

JSE:AYO vs IBM, ACN, FI: Interest Coverage Comparison

For the Information Technology Services subindustry, AYO Technology Solutions'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.


AYO Technology Solutions Interest Coverage vs Software Industry

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

* The bar in red indicates where AYO Technology Solutions's Interest Coverage falls into.


JSE:AYO
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AYO Technology Solutions Ltd JSE:AYO
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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AYO Technology Solutions 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.

AYO Technology Solutions's Interest Coverage for the fiscal year that ended in Aug. 2024 is calculated as

Here, for the fiscal year that ended in Aug. 2024, AYO Technology Solutions's Interest Expense was R0 Mil. Its Operating Income was R-487 Mil. And its Long-Term Debt & Capital Lease Obligation was R27 Mil.

GuruFocus does not calculate AYO Technology Solutions's interest coverage with the available data.

AYO Technology Solutions's Interest Coverage for the quarter that ended in Feb. 2025 is calculated as

Here, for the six months ended in Feb. 2025, AYO Technology Solutions's Interest Expense was R0 Mil. Its Operating Income was R-132 Mil. And its Long-Term Debt & Capital Lease Obligation was R32 Mil.

GuruFocus does not calculate AYO Technology Solutions's interest coverage with the available data.

* 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?
AYO Technology Solutions (JSE:AYO) has a Interest Coverage of 0 (At Loss) as of Feb. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on AYO Technology Solutions and its competitors.
Is AYO Technology Solutions' Interest Coverage too high?
AYO Technology Solutions' current Interest Coverage is 0 (At Loss). Overall, AYO Technology Solutions has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does AYO Technology Solutions' Interest Coverage compare to IBM and ACN?
AYO Technology Solutions' Interest Coverage of 0 (At Loss) can be compared against companies in the Software industry. The industry median Interest Coverage is 26.18. 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 Software company?
The median Interest Coverage among Software companies is 26.18, based on 1,698 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 AYO Technology Solutions and its competitors. For the Software industry, the median Interest Coverage is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AYO Technology Solutions'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 AYO Technology Solutions stock overvalued right now?
AYO Technology Solutions (JSE:AYO) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). AYO Technology Solutions' overall GF Score™ is 11/100. 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 AYO Technology Solutions (JSE:AYO), the current Interest Coverage is 0 (At Loss) as of Feb. 2025. 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.

AYO Technology Solutions Business Description

Address Cnr Heerengracht & Walter Sisulu Avenue, 10th Floor, Convention Tower, Foreshore, Cape Town, WC, ZAF, 8001
AYO Technology Solutions Ltd is a South African information and communications technology (ICT) investment holding company with broad-based black economic empowerment (B-BBEE) status. Through its subsidiaries, it provides technology solutions to public-sector and private-sector clients in South Africa and selected international markets. Its service offering spans managed services, systems integration, software development and consulting, cybersecurity, cloud solutions, unified communications, data analytics, business process management, healthcare services and tracking solutions. The group operates through segments including Software and Consulting, Security Solutions, Unified Communications, Healthcare Services, Tracking Solutions and Managed Services, with Managed Services historically contributing the largest share of revenue. Revenue is generated primarily from long-term managed services contracts, project-based systems integration and software work, licensing, and support and maintenance agreements, supplemented by hardware and product sales. AYO is listed on the Johannesburg Stock Exchange.
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