GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Prime Office AS (OCSE:PRIMOF) » Definitions » Interest Coverage

Prime Office AS (OCSE:PRIMOF) Interest Coverage : 2.61 (As of Sep. 2024)


View and export this data going back to 2008. Start your Free Trial

What is Prime Office AS 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. Prime Office AS's Operating Income for the three months ended in Sep. 2024 was kr30.0 Mil. Prime Office AS's Interest Expense for the three months ended in Sep. 2024 was kr-11.5 Mil. Prime Office AS's interest coverage for the quarter that ended in Sep. 2024 was 2.61. 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. Prime Office AS interest coverage is 1.89, which is low.

The historical rank and industry rank for Prime Office AS's Interest Coverage or its related term are showing as below:

OCSE:PRIMOF' s Interest Coverage Range Over the Past 10 Years
Min: 1.86   Med: 3.38   Max: 4.89
Current: 1.89


OCSE:PRIMOF's Interest Coverage is ranked worse than
69.3% of 1316 companies
in the Real Estate industry
Industry Median: 3.895 vs OCSE:PRIMOF: 1.89

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


Prime Office AS Interest Coverage Historical Data

The historical data trend for Prime Office AS'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.

Prime Office AS Interest Coverage Chart

Prime Office AS 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 3.51 3.74 4.04 4.89 1.96

Prime Office AS Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.91 1.07 2.37 3.10 2.61

Competitive Comparison of Prime Office AS's Interest Coverage

For the Real Estate - Development subindustry, Prime Office AS'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.


Prime Office AS's Interest Coverage Distribution in the Real Estate Industry

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

* The bar in red indicates where Prime Office AS's Interest Coverage falls into.



Prime Office AS 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.

Prime Office AS'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, Prime Office AS's Interest Expense was kr-61.5 Mil. Its Operating Income was kr120.7 Mil. And its Long-Term Debt & Capital Lease Obligation was kr1,614.8 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*120.736/-61.455
=1.96

Prime Office AS's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Prime Office AS's Interest Expense was kr-11.5 Mil. Its Operating Income was kr30.0 Mil. And its Long-Term Debt & Capital Lease Obligation was kr1,928.1 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*30.036/-11.496
=2.61

* 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.


Prime Office AS  (OCSE:PRIMOF) 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 .


Prime Office AS Interest Coverage Related Terms

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


Prime Office AS Business Description

Traded in Other Exchanges
N/A
Address
Sonder Alle 6, 2. sal, Arhus, DNK, DK-8000
Prime Office AS is a Denmark based real estate company. Its portfolio consists of office properties, residential and commercial properties and invests in property company which owns apartments in Northern Germany.

Prime Office AS Headlines

No Headlines