Al Fajar AL Alamia CoOG (MUS:AFAI) Interest Coverage: 3.31 (As of Mar. 2019)

What is Al Fajar AL Alamia CoOG Interest Coverage?

Al Fajar AL Alamia CoOG MUS:AFAI Interest Coverage is 3.31 as of Mar. 2019.

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. Al Fajar AL Alamia CoOG's Operating Income for the three months ended in Mar. 2019 was ر.ع0.78 Mil. Al Fajar AL Alamia CoOG's Interest Expense for the three months ended in Mar. 2019 was ر.ع-0.24 Mil. Al Fajar AL Alamia CoOG's interest coverage for the quarter that ended in Mar. 2019 was 3.31. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Al Fajar AL Alamia CoOG's Interest Coverage or its related term are showing as below:

MUS:AFAI's Interest Coverage is not ranked ^*
in the Metals & Mining industry.
Industry Median: No Debt
* 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.

Al Fajar AL Alamia CoOG (MUS:AFAI) 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 .

Al Fajar AL Alamia CoOG Interest Coverage Related Terms

Al Fajar AL Alamia CoOG Interest Coverage Historical Data

* Premium members only.

The historical data trend for Al Fajar AL Alamia CoOG'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.

Al Fajar AL Alamia CoOG Interest Coverage Chart

Al Fajar AL Alamia CoOG Annual Data

Trend

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Interest Coverage

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2.37

2.83

1.34

2.90

Al Fajar AL Alamia CoOG Quarterly Data
	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19
Interest Coverage	Get a 7-Day Free Trial															4.69	1.13	3.83	2.92	3.31

MUS:AFAI vs SND: Interest Coverage Comparison

For the Other Industrial Metals & Mining subindustry, Al Fajar AL Alamia CoOG'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.

Al Fajar AL Alamia CoOG Interest Coverage vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Al Fajar AL Alamia CoOG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Al Fajar AL Alamia CoOG's Interest Coverage falls into.

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Al Fajar AL Alamia CoOG 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.

Al Fajar AL Alamia CoOG's Interest Coverage for the fiscal year that ended in Jun. 2018 is calculated as

Here, for the fiscal year that ended in Jun. 2018, Al Fajar AL Alamia CoOG's Interest Expense was ر.ع-0.77 Mil. Its Operating Income was ر.ع2.23 Mil. And its Long-Term Debt & Capital Lease Obligation was ر.ع4.24 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2018 )	/	Interest Expense (A: Jun. 2018 )
	=	-1	*	2.227	/	-0.767
	=	2.90

Al Fajar AL Alamia CoOG's Interest Coverage for the quarter that ended in Mar. 2019 is calculated as

Here, for the three months ended in Mar. 2019, Al Fajar AL Alamia CoOG's Interest Expense was ر.ع-0.24 Mil. Its Operating Income was ر.ع0.78 Mil. And its Long-Term Debt & Capital Lease Obligation was ر.ع3.28 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2019 )	/	Interest Expense (Q: Mar. 2019 )
	=	-1	*	0.778	/	-0.235
	=	3.31

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 3.31 mean?

Al Fajar AL Alamia CoOG (MUS:AFAI) has a Interest Coverage of 3.31 as of Mar. 2019. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Al Fajar AL Alamia CoOG and its competitors.

Is Al Fajar AL Alamia CoOG's Interest Coverage too high?

Al Fajar AL Alamia CoOG's current Interest Coverage is 3.31. The Metals & Mining industry median Interest Coverage is 10,000.00. Al Fajar AL Alamia CoOG's value of 3.31 is 100% below this industry median.

How does Al Fajar AL Alamia CoOG's Interest Coverage compare to SND?

Al Fajar AL Alamia CoOG's Interest Coverage of 3.31 can be compared against companies in the Metals & Mining industry. The industry median Interest Coverage is 10,000.00. Al Fajar AL Alamia CoOG's value of 3.31 is 100% 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 Metals & Mining company?

The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,316 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. Al Fajar AL Alamia CoOG's current Interest Coverage of 3.31 is 100% 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 Al Fajar AL Alamia CoOG and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Fajar AL Alamia CoOG's current Interest Coverage is 3.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Al Fajar AL Alamia CoOG stock overvalued right now?

Al Fajar AL Alamia CoOG (MUS:AFAI) has a current Interest Coverage of 3.31. The current Interest Coverage is 3.31 and 100% below the Metals & Mining industry median of 10,000.00. 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 Al Fajar AL Alamia CoOG (MUS:AFAI), the current Interest Coverage is 3.31 as of Mar. 2019. 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.

Al Fajar AL Alamia CoOG Business Description

Industry Basic Materials Metals & Mining

Comparable Companies ASX:G1A TSX:NB TSX:URE XCNQ:IRV TSXV:CGP TSXV:SGMA TSXV:ML SND PHS:ABG LSE:CAPD MIC:ROLO TSXV:MTA SGX:OAJ ASX:ERA TSE:3023 BOM:512531 HKSE:00758 LSE:PDL TSXV:REG TSXV:LA

Address Ghala Industrial Estate, Block No: 260, Plot no: 969, Complex no: 260, Street no: 6037, Building no: 2822, City Center Al Qurum, Muscat, OMN, 102

Website http://www.alfajar.co.om

Al Fajar AL Alamia Co SAOG along with its subsidiaries engages in the manufacture and sale of industrial grade explosives. The company primarily manufactures, packages and stores ammonium nitrate, fuel oil (ANFO) and emulsion explosives. ANFO explosives are priced lower than emulsion high explosives and are used in larger quantities. It also provide service of import and storage of initiating systems and drilling accessories. The group operates in two segments:Explosives manufacturing and trading segment includes manufacture and sale of explosives. The Drilling and blasting segment engages in the business of providing drilling and blasting services. It provide services to roads, pipelines, dams, tunnels, undersea blasting for ports, mining and quarrying companies.