Arabian Centres Co (SAU:4321) Interest Coverage : 2.37 (As of Mar. 2025)

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What is Arabian Centres 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. Arabian Centres Co's Operating Income for the three months ended in Mar. 2025 was ﷼409 Mil. Arabian Centres Co's Interest Expense for the three months ended in Mar. 2025 was ﷼-172 Mil. Arabian Centres Co's interest coverage for the quarter that ended in Mar. 2025 was 2.37. The higher the ratio, the stronger the company's financial strength is.

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

SAU:4321' s Interest Coverage Range Over the Past 10 Years
Min: 3.87 Med: 8.26 Max: 13.1
Current: 12.88

SAU:4321's Interest Coverage is ranked better than
73.44% of 1314 companies
in the Real Estate industry
Industry Median: 3.94 vs SAU:4321: 12.88

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

Arabian Centres Co Interest Coverage Historical Data

The historical data trend for Arabian Centres 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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Arabian Centres Co Interest Coverage Chart

Arabian Centres Co Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Dec23

Dec24

Interest Coverage

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9.24

4.77

8.26

13.10

12.83

Arabian Centres Co Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial															2.41	2.79	2.61	-	2.37

Competitive Comparison of Arabian Centres Co's Interest Coverage

For the Real Estate Services subindustry, Arabian Centres 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.

Arabian Centres Co's Interest Coverage Distribution in the Real Estate Industry

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

* The bar in red indicates where Arabian Centres Co's Interest Coverage falls into.

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Arabian Centres 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.

Arabian Centres Co's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Arabian Centres Co's Interest Expense was ﷼-133 Mil. Its Operating Income was ﷼1,713 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼14,928 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	1713.269	/	-133.485
	=	12.83

Arabian Centres Co's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Arabian Centres Co's Interest Expense was ﷼-172 Mil. Its Operating Income was ﷼409 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼14,943 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	408.594	/	-172.437
	=	2.37

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

Arabian Centres Co (SAU:4321) 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 .

Arabian Centres Co Interest Coverage Related Terms

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

Arabian Centres Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Arabian Centres Co (SAU:4321) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

8838, Prince Turki Ibn Abdulaziz Al Awwal Road, King Saud University District, Riyadh, SAU, 12373-4925

Website

https://www.arabiancentres.com

Arabian Centres Co is a Saudi Arabia-based company. The company owns, operates, and develops lifestyle centers. Its principal activities include the purchase of land for the construction of buildings, development, and investment by selling or renting and contracting works for residential and commercial buildings, including demolition, restoration, drilling, and maintenance work. The company also provides maintenance and operation of commercial centers, tourist resorts, hotels, and restaurants, as well as managing and operating temporary and permanent exhibitions, compounds and hospitals. It derives the vast majority of its revenue from rental income.

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