Taiba Kuwaiti Holding Co KSC (KUW:TAIBA) Interest Coverage: 64.25 (As of Sep. 2014)


What is Taiba Kuwaiti Holding Co KSC Interest Coverage?

Taiba Kuwaiti Holding Co KSC KUW:TAIBA Interest Coverage is 64.25 as of Sep. 2014.

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. Taiba Kuwaiti Holding Co KSC's Operating Income for the three months ended in Sep. 2014 was KWD69.7 Mil. Taiba Kuwaiti Holding Co KSC's Interest Expense for the three months ended in Sep. 2014 was KWD-1.1 Mil. Taiba Kuwaiti Holding Co KSC's interest coverage for the quarter that ended in Sep. 2014 was 64.25. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Taiba Kuwaiti Holding Co KSC's Interest Coverage or its related term are showing as below:

KUW:TAIBA' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 0   Max: 71.22
Current: 71.22

KUW:TAIBA's Interest Coverage is not ranked
in the Credit Services industry.
Industry Median: 47.86 vs KUW:TAIBA: 71.22

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

Taiba Kuwaiti Holding Co KSC  (KUW:TAIBA) 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 .

Taiba Kuwaiti Holding Co KSC Interest Coverage Related Terms

Taiba Kuwaiti Holding Co KSC Interest Coverage Historical Data

* Premium members only.

The historical data trend for Taiba Kuwaiti Holding Co KSC'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.

Taiba Kuwaiti Holding Co KSC Interest Coverage Chart

Taiba Kuwaiti Holding Co KSC Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11
Interest Coverage
21.87 0.00 No Debt 0.00 7.52

Taiba Kuwaiti Holding Co KSC Quarterly Data
Mar12 Jun12 Sep12 Jun13 Sep13 Jun14 Sep14
Interest Coverage Get a 7-Day Free Trial No Debt 196.42 280.28 42.34 64.25

Taiba Kuwaiti Holding Co KSC Interest Coverage Competitor Comparison

For the Credit Services subindustry, Taiba Kuwaiti Holding Co KSC'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.

Taiba Kuwaiti Holding Co KSC Interest Coverage vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Taiba Kuwaiti Holding Co KSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Taiba Kuwaiti Holding Co KSC's Interest Coverage falls into.


Taiba Kuwaiti Holding Co KSC 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.

Taiba Kuwaiti Holding Co KSC's Interest Coverage for the fiscal year that ended in Dec. 2011 is calculated as

Here, for the fiscal year that ended in Dec. 2011, Taiba Kuwaiti Holding Co KSC's Interest Expense was KWD-0.2 Mil. Its Operating Income was KWD1.7 Mil. And its Long-Term Debt & Capital Lease Obligation was KWD0.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2011 )/Interest Expense (A: Dec. 2011 )
=-1*1.706/-0.227
=7.52

Taiba Kuwaiti Holding Co KSC's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Here, for the three months ended in Sep. 2014, Taiba Kuwaiti Holding Co KSC's Interest Expense was KWD-1.1 Mil. Its Operating Income was KWD69.7 Mil. And its Long-Term Debt & Capital Lease Obligation was KWD2.2 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2014 )/Interest Expense (Q: Sep. 2014 )
=-1*69.706/-1.085
=64.25

* 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 64.25 mean?
Taiba Kuwaiti Holding Co KSC (KUW:TAIBA) has a Interest Coverage of 64.25 as of Sep. 2014. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Taiba Kuwaiti Holding Co KSC and its competitors.
Is Taiba Kuwaiti Holding Co KSC's Interest Coverage too high?
Taiba Kuwaiti Holding Co KSC's current Interest Coverage is 64.25. The Credit Services industry median Interest Coverage is 47.86. Taiba Kuwaiti Holding Co KSC's value of 64.25 is 34.2% above this industry median.
How does Taiba Kuwaiti Holding Co KSC's Interest Coverage compare to competitors?
Taiba Kuwaiti Holding Co KSC's Interest Coverage of 64.25 can be compared against companies in the Credit Services industry. The industry median Interest Coverage is 47.86. Taiba Kuwaiti Holding Co KSC's value of 64.25 is 34.2% above 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 a Credit Services company?
The median Interest Coverage among Credit Services companies is 47.86, based on 165 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. Taiba Kuwaiti Holding Co KSC's current Interest Coverage of 64.25 is 34.2% above 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 Taiba Kuwaiti Holding Co KSC and its competitors. For the Credit Services industry, the median Interest Coverage is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiba Kuwaiti Holding Co KSC's current Interest Coverage is 64.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiba Kuwaiti Holding Co KSC stock overvalued right now?
Taiba Kuwaiti Holding Co KSC (KUW:TAIBA) has a current Interest Coverage of 64.25. The current Interest Coverage is 64.25 and 34.2% above the Credit Services industry median of 47.86. 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 Taiba Kuwaiti Holding Co KSC (KUW:TAIBA), the current Interest Coverage is 64.25 as of Sep. 2014. 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.

Taiba Kuwaiti Holding Co KSC Business Description

Comparable Companies KUW:ARZANKUW:FACIL
Taiba Kuwaiti Holding Co operates as an investment holding company. It holds shares of other companies, extends loans to investee companies, provides guarantees for third parties and acquires industrial trademarks, among others.