AX Real Estate (MAL:AXR) Interest Coverage : 3.94 (As of Oct. 2024)

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What is AX Real Estate 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. AX Real Estate's Operating Income for the six months ended in Oct. 2024 was €12.27 Mil. AX Real Estate's Interest Expense for the six months ended in Oct. 2024 was €-3.12 Mil. AX Real Estate's interest coverage for the quarter that ended in Oct. 2024 was 3.94. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. AX Real Estate PLC interest coverage is 2.96, which is low.

The historical rank and industry rank for AX Real Estate's Interest Coverage or its related term are showing as below:

MAL:AXR' s Interest Coverage Range Over the Past 10 Years
Min: 2.19 Med: 2.37 Max: 2.96
Current: 2.96

MAL:AXR's Interest Coverage is ranked worse than
57.86% of 1329 companies
in the Real Estate industry
Industry Median: 3.99 vs MAL:AXR: 2.96

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

AX Real Estate Interest Coverage Historical Data

The historical data trend for AX Real Estate'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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AX Real Estate Interest Coverage Chart

AX Real Estate Annual Data

Trend

Oct22

Oct23

Oct24

Interest Coverage

2.37

2.19

2.96

AX Real Estate Semi-Annual Data
	Apr22	Oct22	Apr23	Oct23	Apr24	Oct24
Interest Coverage	Get a 7-Day Free Trial			2.60	1.78	2.43	2.00	3.94

Competitive Comparison of AX Real Estate's Interest Coverage

For the Real Estate - Diversified subindustry, AX Real Estate'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.

AX Real Estate's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, AX Real Estate's Interest Coverage distribution charts can be found below:

* The bar in red indicates where AX Real Estate's Interest Coverage falls into.

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AX Real Estate 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.

AX Real Estate's Interest Coverage for the fiscal year that ended in Oct. 2024 is calculated as

Here, for the fiscal year that ended in Oct. 2024, AX Real Estate's Interest Expense was €-6.28 Mil. Its Operating Income was €18.60 Mil. And its Long-Term Debt & Capital Lease Obligation was €85.89 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Oct. 2024 )	/	Interest Expense (A: Oct. 2024 )
	=	-1	*	18.598	/	-6.279
	=	2.96

AX Real Estate's Interest Coverage for the quarter that ended in Oct. 2024 is calculated as

Here, for the six months ended in Oct. 2024, AX Real Estate's Interest Expense was €-3.12 Mil. Its Operating Income was €12.27 Mil. And its Long-Term Debt & Capital Lease Obligation was €85.89 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Oct. 2024 )	/	Interest Expense (Q: Oct. 2024 )
	=	-1	*	12.273	/	-3.116
	=	3.94

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

AX Real Estate (MAL:AXR) 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 .

AX Real Estate Interest Coverage Related Terms

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AX Real Estate Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » AX Real Estate PLC (MAL:AXR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

AX Business Centre, Triq Id-Difiza Civili, Mosta, MLT, MST 1741

Website

https://www.axrealestate.mt

AX Real Estate PLC serves as the holding company of the Estates Group within the AX Group, with the former boasting a diverse portfolio of properties. It is engaged in four main business sectors namely, Care, Construction, Hospitality, Real Estate, and Development, and is also involved in renewable energy. It operates into Five reportable segments Hospitality, Care home, Offices, Residential, and Warehousing. It generates the majority of its revenue from the Hospitality segment.