ArthaLand (PHS:ALCO) Interest Coverage : 0.27 (As of Sep. 2024)

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What is ArthaLand 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. ArthaLand's Operating Income for the three months ended in Sep. 2024 was ₱103 Mil. ArthaLand's Interest Expense for the three months ended in Sep. 2024 was ₱-379 Mil. ArthaLand's interest coverage for the quarter that ended in Sep. 2024 was 0.27. 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. ArthaLand Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

PHS:ALCO' s Interest Coverage Range Over the Past 10 Years
Min: 0.51 Med: 2.62 Max: 8.69
Current: 0.52

PHS:ALCO's Interest Coverage is ranked worse than
93.2% of 1309 companies
in the Real Estate industry
Industry Median: 3.94 vs PHS:ALCO: 0.52

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

ArthaLand Interest Coverage Historical Data

The historical data trend for ArthaLand'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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ArthaLand Interest Coverage Chart

ArthaLand Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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8.33

3.36

1.88

0.51

1.34

ArthaLand 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															0.32	1.69	0.04	0.46	0.27

Competitive Comparison of ArthaLand's Interest Coverage

For the Real Estate - Diversified subindustry, ArthaLand'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.

ArthaLand's Interest Coverage Distribution in the Real Estate Industry

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

* The bar in red indicates where ArthaLand's Interest Coverage falls into.

ArthaLand 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.

ArthaLand'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, ArthaLand's Interest Expense was ₱-1,016 Mil. Its Operating Income was ₱1,364 Mil. And its Long-Term Debt & Capital Lease Obligation was ₱17,167 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1363.654	/	-1016.185
	=	1.34

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

Here, for the three months ended in Sep. 2024, ArthaLand's Interest Expense was ₱-379 Mil. Its Operating Income was ₱103 Mil. And its Long-Term Debt & Capital Lease Obligation was ₱19,424 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	103.338	/	-378.507
	=	0.27

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

ArthaLand (PHS:ALCO) 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 .

ArthaLand Interest Coverage Related Terms

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

ArthaLand Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » ArthaLand Corp (PHS:ALCO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

5th Avenue corner 30th Street, 7 Floor, ArthaLand Century Pacific Tower, Bonifacio Global City, Metro Manila, Taguig City, PHL, 1634

Website

https://www.arthaland.com

ArthaLand Corp engages in property development, sale, and management. It is a developer of residential, office, and leisure properties. The operating segments of the group are the Sale of real estate, Leasing, Property Management services and other services, and Corporate. It derives key revenue from the sale of the real estate business segment. The company's operations are located in the Philippines. Its project portfolio comprises Cebu Exchange, Arya Residences, Arthaland Century Pacific Tower, Savya Financial Center, and others.