Pan African Resources (LSE:PAF) Interest Coverage : 12.91 (As of Dec. 2023)

View and export this data going back to 2000. Start your Free Trial

What is Pan African Resources 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. Pan African Resources's Operating Income for the six months ended in Dec. 2023 was £56.6 Mil. Pan African Resources's Interest Expense for the six months ended in Dec. 2023 was £-4.4 Mil. Pan African Resources's interest coverage for the quarter that ended in Dec. 2023 was 12.91. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Pan African Resources's Interest Coverage or its related term are showing as below:

LSE:PAF' s Interest Coverage Range Over the Past 10 Years
Min: 2.98 Med: 11.69 Max: 35.57
Current: 10.84

LSE:PAF's Interest Coverage is ranked worse than
79.15% of 1343 companies
in the Metals & Mining industry
Industry Median: No Debt vs LSE:PAF: 10.84

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

Pan African Resources Interest Coverage Historical Data

The historical data trend for Pan African Resources'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.

Pan African Resources Interest Coverage Chart

Pan African Resources Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

Get a 7-Day Free Trial

2.98

6.48

14.40

16.87

10.49

Pan African Resources 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															24.54	10.37	13.28	8.65	12.91

Competitive Comparison of Pan African Resources's Interest Coverage

For the Gold subindustry, Pan African Resources'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.

Pan African Resources's Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Pan African Resources's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Pan African Resources's Interest Coverage falls into.

Pan African Resources 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.

Pan African Resources's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Pan African Resources's Interest Expense was £-6.8 Mil. Its Operating Income was £71.7 Mil. And its Long-Term Debt & Capital Lease Obligation was £35.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	71.74	/	-6.84
	=	10.49

Pan African Resources's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Pan African Resources's Interest Expense was £-4.4 Mil. Its Operating Income was £56.6 Mil. And its Long-Term Debt & Capital Lease Obligation was £72.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	56.6	/	-4.385
	=	12.91

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

Pan African Resources (LSE:PAF) 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 .

Pan African Resources Interest Coverage Related Terms

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

Pan African Resources (LSE:PAF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Pan African Resources PLC (LSE:PAF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PAN:South Africa PAFRY:USA PAFRF:USA PAF:UK RTZ:Germany

Address

The Firs Office Building, 2nd Floor, Office 204, Corner Cradock and Biermann Avenues, Rosebank, Johannesburg, GT, ZAF, 2196

Website

https://www.panafricanresources.com

Pan African Resources PLC is a precious metals producer based in the United Kingdom. It operates metal mines in South Africa and derives revenue principally through the mining, extraction, and sale of gold. The company conducts its business through the operation of mining projects in various parts of South Africa, such as Barberton Mines, a gold mining project, Phoenix Platinum, and Uitkomst Colliery, located in Newcastle which sell coal to local and export markets. It also operates growth projects, including PAR Gold Proprietary Limited, which derives revenue from providing management and administration services to other group companies.