Lumi Rental Co (SAU:4262) Interest Coverage : 2.51 (As of Mar. 2024)

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What is Lumi Rental 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. Lumi Rental Co's Operating Income for the three months ended in Mar. 2024 was ﷼78.4 Mil. Lumi Rental Co's Interest Expense for the three months ended in Mar. 2024 was ﷼-31.2 Mil. Lumi Rental Co's interest coverage for the quarter that ended in Mar. 2024 was 2.51. 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. Lumi Rental Co interest coverage is 2.79, which is low.

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

SAU:4262' s Interest Coverage Range Over the Past 10 Years
Min: 2.79 Med: 6.81 Max: 9.66
Current: 2.79

SAU:4262's Interest Coverage is ranked worse than
79.65% of 806 companies
in the Business Services industry
Industry Median: 13.47 vs SAU:4262: 2.79

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

Lumi Rental Co Interest Coverage Historical Data

The historical data trend for Lumi Rental 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.

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Lumi Rental Co Interest Coverage Chart

Lumi Rental Co Annual Data

Trend

Dec22

Dec23

Interest Coverage

9.66

3.95

Lumi Rental Co Quarterly Data
	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial			10.90	5.98	3.44	2.70	2.51

Competitive Comparison of Lumi Rental Co's Interest Coverage

For the Rental & Leasing Services subindustry, Lumi Rental 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.

Lumi Rental Co's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Lumi Rental Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Lumi Rental Co's Interest Coverage falls into.

Lumi Rental 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.

Lumi Rental 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, Lumi Rental Co's Interest Expense was ﷼-63.8 Mil. Its Operating Income was ﷼252.0 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼988.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	251.974	/	-63.826
	=	3.95

Lumi Rental Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Lumi Rental Co's Interest Expense was ﷼-31.2 Mil. Its Operating Income was ﷼78.4 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼1,131.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	78.415	/	-31.236
	=	2.51

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

Lumi Rental Co (SAU:4262) 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 .

Lumi Rental Co Interest Coverage Related Terms

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

Lumi Rental Co (SAU:4262) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Lumi Rental Co (SAU:4262) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Imam Saud bin Abdulaziz bin, P.O. Box 6477, Muhammad Street, Al-Taawun District, Riyadh, SAU, 12476

Website

https://www.lumirental.com

Lumi Rental Co is a Car rental company which offers lease services to corporate and Government sector clients, provides rentals through a network of Thirty airport and city branches across the Kingdom and via digital channels, and sells used vehicles reaching the end of their useful life. The company has two reportable segments which are Leasing includes Providing vehicles on long term leases to corporate and government customers . Rental includes Providing vehicles on daily, weekly, monthly rentals to walking and corporate customers.

Lumi Rental Co (SAU:4262) Headlines

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