Aradel HoldingsNSA:ARADEL 16 Interest Coverage is 1.76 as of Mar. 2026, which is 78% below its 10-year median of 8.16. GuruFocus rates NSA:ARADEL with a GF Score™ of 16/100. The stock has 7 warning signs investors should review. Among 727 Oil & Gas companies, Aradel Holdings ranks worse than 72.76% on this metric.
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. Aradel Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was ₦177,480 Mil. Aradel Holdings's Interest Expense for the
three
months ended in Mar. 2026 was ₦-100,813 Mil.
Aradel Holdings's interest coverage for the quarter that ended in Mar. 2026 was 1.76.
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. Aradel Holdings PLC interest coverage is 2.52, which is low.
The historical rank and industry rank for Aradel Holdings's Interest Coverage or its related term are showing as below:
NSA:ARADEL'
s Interest Coverage Range Over the Past 10 Years
Min: 2.52 Med: 8.16 Max: 13.86
Current: 2.52
NSA:ARADEL's Interest Coverage is ranked worse than 72.76% of 727
companies
in the Oil & Gas industry
Industry Median: 5.88
vs NSA:ARADEL: 2.52
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 .
Aradel Holdings Interest Coverage Related Terms
Aradel Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Aradel Holdings'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.
NSA:ARADEL vs XOM, CVX: Interest Coverage Comparison
For the Oil & Gas Integrated subindustry, Aradel Holdings'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.
Aradel Holdings Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Aradel Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Aradel Holdings's Interest Coverage falls into.
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:
* 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.
Aradel Holdings (NSA:ARADEL) has a Interest Coverage of 1.76 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Aradel Holdings and its competitors. This is 78% below median its historical median of 8.16. Over the past decade, Aradel Holdings' Interest Coverage has ranged from 2.52 to 13.86. According to the industry distribution chart, Aradel Holdings ranks #529 out of 727 companies in the Oil & Gas industry, placing it in the top 72.8%.
Is Aradel Holdings' Interest Coverage too high?
Aradel Holdings' current Interest Coverage of 1.76 is 78% below median its 10-year median of 8.16. Over the past 10 years, this metric has ranged from a low of 2.52 to a high of 13.86. The Oil & Gas industry median Interest Coverage is 5.88. Aradel Holdings' value of 1.76 is 70.1% below this industry median. Based on the distribution chart, Aradel Holdings ranks #529 out of 727 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Aradel Holdings has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Aradel Holdings' Interest Coverage compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Aradel Holdings ranks #529 out of 727 companies for Interest Coverage. This places Aradel Holdings in the lower half of its industry. The industry median Interest Coverage is 5.88. Aradel Holdings' value of 1.76 is 70.1% below this benchmark. Historically, Aradel Holdings' own Interest Coverage has ranged from 2.52 to 13.86 over the past decade. While the company's 10-year median is 8.16 vs. the industry median of 5.88, Aradel Holdings has consistently been below the industry average. 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.88, based on 727 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. Aradel Holdings's current Interest Coverage of 1.76 is 70.1% 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 Aradel Holdings and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aradel Holdings's current Interest Coverage is 1.76, which is 78% below median its own 10-year median of 8.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aradel Holdings stock overvalued right now?
Aradel Holdings (NSA:ARADEL) has a current Interest Coverage of 1.76. The current Interest Coverage is 1.76, which is 78% below median its 10-year median of 8.16 and 70.1% below the Oil & Gas industry median of 5.88. Aradel Holdings' overall GF Score™ is 16/100 with 7 warning signs to review. 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 Aradel Holdings (NSA:ARADEL), the current Interest Coverage is 1.76 as of Mar. 2026. 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.
Aradel Holdings PLC is an indigenous energy company in Nigeria. It engaged in the upstream, midstream, and downstream value chain of the oil and gas industry. Its operations include Energy Transition and Renewable Energy. The group's assets are OML 54, OML 53, OML 34, and OPL 227. The group's operations cover four segments: Crude Oil, Gas, Refinery & Investment Properties. The maximum revenue is from Crude Oil.
16GF Score
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