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. Barloworld's
Operating Income
for the
six
months ended in Mar. 2025 was R1,587 Mil. Barloworld's Interest Expense for the
six
months ended in Mar. 2025 was R-798 Mil.
Barloworld's interest coverage for the quarter that ended in Mar. 2025 was 1.99.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Barloworld's Interest Coverage or its related term are showing as below:
JSE:BAW's Interest Coverage is not ranked *
in the Industrial Products industry.
Industry Median: 14.8 * Ranked among companies with meaningful Interest Coverage only.
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 .
Barloworld Interest Coverage Related Terms
Barloworld Interest Coverage Historical Data
* Premium members only.
The historical data trend for Barloworld'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.
JSE:BAW vs GEV, ETN, PH: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Barloworld'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.
Barloworld Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Barloworld's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Barloworld's Interest Coverage falls into.
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:
* 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.
Barloworld (JSE:BAW) has a Interest Coverage of 1.99 as of Mar. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Barloworld and its competitors.
Is Barloworld's Interest Coverage too high?
Barloworld's current Interest Coverage is 1.99. The Industrial Products industry median Interest Coverage is 14.80. Barloworld's value of 1.99 is 86.6% below this industry median. Overall, Barloworld has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Barloworld's Interest Coverage compare to GEV and ETN?
Barloworld's Interest Coverage of 1.99 can be compared against companies in the Industrial Products industry. The industry median Interest Coverage is 14.80. Barloworld's value of 1.99 is 86.6% below this benchmark. 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,325 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. Barloworld's current Interest Coverage of 1.99 is 86.6% below the industry median. 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 Barloworld and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barloworld's current Interest Coverage is 1.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Barloworld stock overvalued right now?
Barloworld (JSE:BAW) has a current Interest Coverage of 1.99. The current Interest Coverage is 1.99 and 86.6% below the Industrial Products industry median of 14.80. Barloworld's overall GF Score™ is 66/100. 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 Barloworld (JSE:BAW), the current Interest Coverage is 1.99 as of Mar. 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.
Barloworld Ltd is an industrial processing, distribution, and services company with two primary areas of focus: Industrial Equipment and Services and Consumer Industries (food and ingredient solutions). Industrial Equipment and related services offer earthmoving equipment, industrial services, and power systems. The Consumer Industries business provides large enterprises with the ingredients essential to the manufacturing of various products including food and beverages, paper, pharmaceuticals, building materials, and adhesives, among others. The company's business segment includes Equipments, which derives maximum revenue, Ingrain, and Others. Geographically, it derives its maximum revenue from South Africa and the rest from Australia, Russia, and Mongolia.
66GF Score
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