Aurora Eiendom AS (OSL:AURA) Interest Coverage : 1.81 (As of Mar. 2024)

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What is Aurora Eiendom 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. Aurora Eiendom AS's Operating Income for the three months ended in Mar. 2024 was kr126.8 Mil. Aurora Eiendom AS's Interest Expense for the three months ended in Mar. 2024 was kr-70.0 Mil. Aurora Eiendom AS's interest coverage for the quarter that ended in Mar. 2024 was 1.81. 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. Aurora Eiendom AS interest coverage is 1.54, which is low.

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

OSL:AURA' s Interest Coverage Range Over the Past 10 Years
Min: 1.54 Med: 2.22 Max: 3.33
Current: 1.54

OSL:AURA's Interest Coverage is ranked worse than
76.52% of 1333 companies
in the Real Estate industry
Industry Median: 3.96 vs OSL:AURA: 1.54

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

Aurora Eiendom AS Interest Coverage Historical Data

The historical data trend for Aurora Eiendom 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.

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Aurora Eiendom AS Interest Coverage Chart

Aurora Eiendom AS Annual Data

Trend

Dec21

Dec22

Dec23

Interest Coverage

3.33

2.22

1.57

Aurora Eiendom AS Quarterly Data
	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial						1.99	1.79	1.63	1.15	1.81

Competitive Comparison of Aurora Eiendom AS's Interest Coverage

For the Real Estate Services subindustry, Aurora Eiendom 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.

Aurora Eiendom AS's Interest Coverage Distribution in the Real Estate Industry

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

* The bar in red indicates where Aurora Eiendom AS's Interest Coverage falls into.

Aurora Eiendom 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.

Aurora Eiendom 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, Aurora Eiendom AS's Interest Expense was kr-302.8 Mil. Its Operating Income was kr476.4 Mil. And its Long-Term Debt & Capital Lease Obligation was kr1,533.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	476.408	/	-302.763
	=	1.57

Aurora Eiendom AS's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Aurora Eiendom AS's Interest Expense was kr-70.0 Mil. Its Operating Income was kr126.8 Mil. And its Long-Term Debt & Capital Lease Obligation was kr4,271.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	126.813	/	-69.991
	=	1.81

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

Aurora Eiendom AS (OSL:AURA) 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 .

Aurora Eiendom AS Interest Coverage Related Terms

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

Aurora Eiendom AS (OSL:AURA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Aurora Eiendom AS (OSL:AURA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Oravegen 4, Surnadal, NOR, 6650

Website

https://www.aurora.no

Aurora Eiendom AS is a Norwegian real estate company that owns, operates, and develops shopping destinations, and creates value for customers, tenants, and investors. The company intends to own shopping centers that have the potential to become leading in their local markets.