We Buy Cars Holding (JSE:WBC) Interest Coverage : 11.80 (As of Mar. 2025)

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What is We Buy Cars Holding 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. We Buy Cars Holding's Operating Income for the six months ended in Mar. 2025 was R730 Mil. We Buy Cars Holding's Interest Expense for the six months ended in Mar. 2025 was R-62 Mil. We Buy Cars Holding's interest coverage for the quarter that ended in Mar. 2025 was 11.80. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for We Buy Cars Holding's Interest Coverage or its related term are showing as below:

JSE:WBC' s Interest Coverage Range Over the Past 10 Years
Min: 6.63 Med: 7.14 Max: 9.93
Current: 9.93

JSE:WBC's Interest Coverage is ranked better than
54.51% of 1042 companies
in the Vehicles & Parts industry
Industry Median: 8.055 vs JSE:WBC: 9.93

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

We Buy Cars Holding Interest Coverage Historical Data

The historical data trend for We Buy Cars Holding'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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We Buy Cars Holding Interest Coverage Chart

We Buy Cars Holding Annual Data

Trend

Mar21

Sep23

Sep24

Interest Coverage

N/A

6.63

7.64

We Buy Cars Holding Semi-Annual Data
	Mar21	Sep23	Mar24	Sep24	Mar25
Interest Coverage	N/A	N/A	6.91	8.41	11.80

Competitive Comparison of We Buy Cars Holding's Interest Coverage

For the Auto & Truck Dealerships subindustry, We Buy Cars Holding'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.

We Buy Cars Holding's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, We Buy Cars Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where We Buy Cars Holding's Interest Coverage falls into.

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We Buy Cars Holding 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.

We Buy Cars Holding's Interest Coverage for the fiscal year that ended in Sep. 2024 is calculated as

Here, for the fiscal year that ended in Sep. 2024, We Buy Cars Holding's Interest Expense was R-158 Mil. Its Operating Income was R1,207 Mil. And its Long-Term Debt & Capital Lease Obligation was R971 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2024 )	/	Interest Expense (A: Sep. 2024 )
	=	-1	*	1206.935	/	-158.024
	=	7.64

We Buy Cars Holding's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the six months ended in Mar. 2025, We Buy Cars Holding's Interest Expense was R-62 Mil. Its Operating Income was R730 Mil. And its Long-Term Debt & Capital Lease Obligation was R1,036 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	730.342	/	-61.901
	=	11.80

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

We Buy Cars Holding (JSE:WBC) 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 .

We Buy Cars Holding Interest Coverage Related Terms

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

We Buy Cars Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » We Buy Cars Holding Ltd (JSE:WBC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

6 Byls Bridge Boulevard, Building 7, Byls Bridge Office Park, Centurion, GT, ZAF, 0046

Website

https://www.webuycars.co.za

We Buy Cars Holding Ltd is engaged in vehicle buying service. The company's offering extends beyond the buying and selling of vehicles. It offers finance solutions, insurance products, and services to protect the customer's car. It generates the majority of its revenue from the sale of motor vehicles.