Insimbi Industrial Holdings (JSE:ISB) Interest Coverage : 0.51 (As of Aug. 2024)

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What is Insimbi Industrial Holdings 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. Insimbi Industrial Holdings's Operating Income for the six months ended in Aug. 2024 was R15 Mil. Insimbi Industrial Holdings's Interest Expense for the six months ended in Aug. 2024 was R-30 Mil. Insimbi Industrial Holdings's interest coverage for the quarter that ended in Aug. 2024 was 0.51. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Insimbi Industrial Holdings's Interest Coverage or its related term are showing as below:

JSE:ISB' s Interest Coverage Range Over the Past 10 Years
Min: 0.63 Med: 3.14 Max: 6.18
Current: 0.63

JSE:ISB's Interest Coverage is ranked worse than
97.68% of 2287 companies
in the Industrial Products industry
Industry Median: 15.96 vs JSE:ISB: 0.63

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

Insimbi Industrial Holdings Interest Coverage Historical Data

The historical data trend for Insimbi Industrial Holdings'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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Insimbi Industrial Holdings Interest Coverage Chart

Insimbi Industrial Holdings Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Interest Coverage

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1.67

1.97

3.07

3.06

1.77

Insimbi Industrial Holdings Semi-Annual Data
	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24	Aug24
Interest Coverage	Get a 7-Day Free Trial															4.03	2.15	2.73	0.73	0.51

Competitive Comparison of Insimbi Industrial Holdings's Interest Coverage

For the Metal Fabrication subindustry, Insimbi Industrial Holdings'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.

Insimbi Industrial Holdings's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Insimbi Industrial Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Insimbi Industrial Holdings's Interest Coverage falls into.

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Insimbi Industrial Holdings 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.

Insimbi Industrial Holdings's Interest Coverage for the fiscal year that ended in Feb. 2024 is calculated as

Here, for the fiscal year that ended in Feb. 2024, Insimbi Industrial Holdings's Interest Expense was R-73 Mil. Its Operating Income was R129 Mil. And its Long-Term Debt & Capital Lease Obligation was R136 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Feb. 2024 )	/	Interest Expense (A: Feb. 2024 )
	=	-1	*	128.718	/	-72.883
	=	1.77

Insimbi Industrial Holdings's Interest Coverage for the quarter that ended in Aug. 2024 is calculated as

Here, for the six months ended in Aug. 2024, Insimbi Industrial Holdings's Interest Expense was R-30 Mil. Its Operating Income was R15 Mil. And its Long-Term Debt & Capital Lease Obligation was R7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Aug. 2024 )	/	Interest Expense (Q: Aug. 2024 )
	=	-1	*	15.223	/	-29.879
	=	0.51

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

Insimbi Industrial Holdings (JSE:ISB) 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 .

Insimbi Industrial Holdings Interest Coverage Related Terms

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

Insimbi Industrial Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Insimbi Industrial Holdings Ltd (JSE:ISB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

359 Crocker Road, Wadeville, Extension 4, Germiston, Johannesburg, GT, ZAF, 1407

Website

https://www.insimbi-group.co.za

Insimbi Industrial Holdings Ltd is a South Africa based company engaged in providing commodities like ferrous and non-ferrous alloys to the steel, aluminum, cement and foundry industries. In addition, it also operates in refractory materials and plastics division. The company's business segments are Non-ferrous, Ferrous, Refractory and Plastics. The group generates the majority of the revenue from the Non-ferrous segment. Non-ferrous segment consists of the divisions which service the foundry and non-ferrous industry, both automotive and heavy, aluminum industry and the powder coating industry. The company exports internationally and derives its key revenue from South Africa.

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