Saudi Automotive Services Co. (SAU:4050) Interest Coverage : 1.11 (As of Mar. 2024)

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

What is Saudi Automotive Services Co. 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. Saudi Automotive Services Co.'s Operating Income for the three months ended in Mar. 2024 was ﷼48 Mil. Saudi Automotive Services Co.'s Interest Expense for the three months ended in Mar. 2024 was ﷼-43 Mil. Saudi Automotive Services Co.'s interest coverage for the quarter that ended in Mar. 2024 was 1.11. 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. Saudi Automotive Services Co. interest coverage is 1.07, which is low.

The historical rank and industry rank for Saudi Automotive Services Co.'s Interest Coverage or its related term are showing as below:

SAU:4050' s Interest Coverage Range Over the Past 10 Years
Min: 1.07 Med: 2.58 Max: 10.68
Current: 1.07

SAU:4050's Interest Coverage is ranked worse than
91.87% of 763 companies
in the Retail - Cyclical industry
Industry Median: 7.82 vs SAU:4050: 1.07

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

Saudi Automotive Services Co. Interest Coverage Historical Data

The historical data trend for Saudi Automotive Services Co.'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.

Saudi Automotive Services Co. Interest Coverage Chart

Saudi Automotive Services Co. Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

2.94

1.90

1.91

1.24

1.13

Saudi Automotive Services Co. Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															1.28	1.22	1.22	0.76	1.11

Competitive Comparison of Saudi Automotive Services Co.'s Interest Coverage

For the Specialty Retail subindustry, Saudi Automotive Services Co.'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.

Saudi Automotive Services Co.'s Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Saudi Automotive Services Co.'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Saudi Automotive Services Co.'s Interest Coverage falls into.

Saudi Automotive Services Co. 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.

Saudi Automotive Services Co.'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, Saudi Automotive Services Co.'s Interest Expense was ﷼-159 Mil. Its Operating Income was ﷼179 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼3,492 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	179.025	/	-158.928
	=	1.13

Saudi Automotive Services Co.'s Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Saudi Automotive Services Co.'s Interest Expense was ﷼-43 Mil. Its Operating Income was ﷼48 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼3,501 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	47.553	/	-42.839
	=	1.11

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

Saudi Automotive Services Co. (SAU:4050) 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 .

Saudi Automotive Services Co. Interest Coverage Related Terms

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

Saudi Automotive Services Co. (SAU:4050) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Saudi Automotive Services Co. (SAU:4050) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Makkah Al Mukarramah Road (Khurais), Building No. 4870, King Abdulaziz district, Riyadh, SAU, 12411

Website

https://www.sasco.com.sa

Saudi Automotive Services Co. is a company engaged in providing services to vehicles and travelers by establishing central workshops to provide the highest level of maintenance and repair and establishing a network of vehicle service stations, as well as providing rest houses and restaurants, importing and selling foodstuffs, drinks, beverages and raw materials required therefor, importing vehicles and spare parts of all kinds for the Group's business and trading in them after obtaining the necessary licenses, carrying out all types of contracting for establishment, management, maintenance and operation of residential and commercial buildings. The company operates in following segments: Retail and operation, Saudi Club, Transportation Fleet and others.

Saudi Automotive Services Co. (SAU:4050) Headlines

No Headlines