Dalata Hotel Group (LSE:DAL) Interest Coverage: 0.64 (As of Dec. 2023)


LSE:DAL Dalata Hotel Group PLC LSE:DAL
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What is Dalata Hotel Group Interest Coverage?

Dalata Hotel Group LSE:DAL 1 Interest Coverage is 0.64 as of Dec. 2023. GuruFocus rates LSE:DAL with a GF Score™ of 1/100.

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. Dalata Hotel Group's Operating Income for the six months ended in Dec. 2023 was £16.9 Mil. Dalata Hotel Group's Interest Expense for the six months ended in Dec. 2023 was £-26.2 Mil. Dalata Hotel Group's interest coverage for the quarter that ended in Dec. 2023 was 0.64. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dalata Hotel Group's Interest Coverage or its related term are showing as below:


LSE:DAL's Interest Coverage is not ranked *
in the Travel & Leisure industry.
Industry Median: 5.35
* Ranked among companies with meaningful Interest Coverage only.

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

Dalata Hotel Group  (LSE:DAL) 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 .

Dalata Hotel Group Interest Coverage Related Terms

Dalata Hotel Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Dalata Hotel Group'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.

Dalata Hotel Group Interest Coverage Chart

Dalata Hotel Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.38 0.00 2.01 2.86 2.77

Dalata Hotel Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 3.90 5.16 0.87 5.25 0.64

LSE:DAL vs MAR, HLT, H: Interest Coverage Comparison

For the Lodging subindustry, Dalata Hotel Group'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.

Dalata Hotel Group Interest Coverage vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Dalata Hotel Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dalata Hotel Group's Interest Coverage falls into.


LSE:DAL
1GF Score
Dalata Hotel Group PLC LSE:DAL
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Dalata Hotel Group 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.

Dalata Hotel Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Dalata Hotel Group's Interest Expense was £-48.6 Mil. Its Operating Income was £134.5 Mil. And its Long-Term Debt & Capital Lease Obligation was £810.6 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*134.477/-48.596
=2.77

Dalata Hotel Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Dalata Hotel Group's Interest Expense was £-26.2 Mil. Its Operating Income was £16.9 Mil. And its Long-Term Debt & Capital Lease Obligation was £810.6 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*16.862/-26.179
=0.64

* 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 0.64 mean?
Dalata Hotel Group (LSE:DAL) has a Interest Coverage of 0.64 as of Dec. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dalata Hotel Group and its competitors.
Is Dalata Hotel Group's Interest Coverage too high?
Dalata Hotel Group's current Interest Coverage is 0.64. The Travel & Leisure industry median Interest Coverage is 5.35. Dalata Hotel Group's value of 0.64 is 88% below this industry median. Overall, Dalata Hotel Group has a GF Score™ of 1/100, reflecting its overall financial health beyond just this single metric.
How does Dalata Hotel Group's Interest Coverage compare to MAR and HLT?
Dalata Hotel Group's Interest Coverage of 0.64 can be compared against companies in the Travel & Leisure industry. The industry median Interest Coverage is 5.35. Dalata Hotel Group's value of 0.64 is 88% 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 a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 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. Dalata Hotel Group's current Interest Coverage of 0.64 is 88% 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 Dalata Hotel Group and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dalata Hotel Group's current Interest Coverage is 0.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dalata Hotel Group stock overvalued right now?
Dalata Hotel Group (LSE:DAL) has a current Interest Coverage of 0.64. The current Interest Coverage is 0.64 and 88% below the Travel & Leisure industry median of 5.35. Dalata Hotel Group's overall GF Score™ is 1/100. 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 Dalata Hotel Group (LSE:DAL), the current Interest Coverage is 0.64 as of Dec. 2023. 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.

Dalata Hotel Group Business Description

Address Termini, 3 Arkle Road, Sandyford Business Park, Dublin 18, IRL, D18 C9C5
Dalata Hotel Group PLC is a hotel operator in the lodging industry. The company is divided into four business segments based on geographical regions: Dublin, regional Ireland, Continental Europe, and the United Kingdom. Dalata wholly owns numerous hotels, leases a variety of hotels, and has several partner hotels under management agreements. The key components of the company's revenue include room rent, food and beverages sales, and other services such as meeting room hires and leisure centers. Dalata operates hotels under the Maldron Hotel and Clayton Hotel brands while also providing hotel management services. A vast majority of the company's revenue is earned in Dublin.
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