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Wilson Bayly Holmes-Ovcon (JSE:WBO) Interest Coverage : 24.10 (As of Dec. 2024)


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What is Wilson Bayly Holmes-Ovcon 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. Wilson Bayly Holmes-Ovcon's Operating Income for the six months ended in Dec. 2024 was R682 Mil. Wilson Bayly Holmes-Ovcon's Interest Expense for the six months ended in Dec. 2024 was R-28 Mil. Wilson Bayly Holmes-Ovcon's interest coverage for the quarter that ended in Dec. 2024 was 24.10. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Wilson Bayly Holmes-Ovcon Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Wilson Bayly Holmes-Ovcon's Interest Coverage or its related term are showing as below:

JSE:WBO' s Interest Coverage Range Over the Past 10 Years
Min: 20.9   Med: 42.9   Max: 203.04
Current: 59


JSE:WBO's Interest Coverage is ranked better than
82.06% of 1327 companies
in the Construction industry
Industry Median: 7.24 vs JSE:WBO: 59.00

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


Wilson Bayly Holmes-Ovcon Interest Coverage Historical Data

The historical data trend for Wilson Bayly Holmes-Ovcon'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.

* Premium members only.

Wilson Bayly Holmes-Ovcon Interest Coverage Chart

Wilson Bayly Holmes-Ovcon Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 43.92 42.90 26.75 42.88

Wilson Bayly Holmes-Ovcon 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.65 31.21 17.08 - 24.10

Competitive Comparison of Wilson Bayly Holmes-Ovcon's Interest Coverage

For the Engineering & Construction subindustry, Wilson Bayly Holmes-Ovcon'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.


Wilson Bayly Holmes-Ovcon's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Wilson Bayly Holmes-Ovcon's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wilson Bayly Holmes-Ovcon's Interest Coverage falls into.


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Wilson Bayly Holmes-Ovcon 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.

Wilson Bayly Holmes-Ovcon's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Wilson Bayly Holmes-Ovcon's Interest Expense was R-28 Mil. Its Operating Income was R1,220 Mil. And its Long-Term Debt & Capital Lease Obligation was R128 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*1219.691/-28.444
=42.88

Wilson Bayly Holmes-Ovcon's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Wilson Bayly Holmes-Ovcon's Interest Expense was R-28 Mil. Its Operating Income was R682 Mil. And its Long-Term Debt & Capital Lease Obligation was R114 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*681.907/-28.293
=24.10

* 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.


Wilson Bayly Holmes-Ovcon  (JSE:WBO) 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 .


Wilson Bayly Holmes-Ovcon Interest Coverage Related Terms

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Wilson Bayly Holmes-Ovcon Business Description

Traded in Other Exchanges
N/A
Address
53 Andries Street, Wynberg, Sandton, Johannesburg, GT, ZAF, 2090
Wilson Bayly Holmes-Ovcon Ltd is a South Africa-based construction company. The company's business activities encompass designing, construction, and procurement, as well as civil engineering, works for large-scale public and private projects, roads and earthworks projects, and turnkey projects. The company also provides construction materials, real estate development, and other services. Its customers predominantly come from the retail, residential, hotel and entertainment, infrastructure, mining, energy, and oil and gas sectors. Its segment include: Plastic Packaging Segment and Property Investment Segment. Wilson Bayly Holmes-Ovconc operates in South Africa, United Kingdom and Rest of Africa. Substantial part of the overall revenue is generated from its operations in South Africa.

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