GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » National Building & Marketing Co (SAU:9510) » Definitions » Interest Coverage

National Building & Marketing Co (SAU:9510) Interest Coverage : 1.90 (As of Dec. 2024)


View and export this data going back to 2018. Start your Free Trial

What is National Building & Marketing 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. National Building & Marketing Co's Operating Income for the six months ended in Dec. 2024 was ﷼54.6 Mil. National Building & Marketing Co's Interest Expense for the six months ended in Dec. 2024 was ﷼-28.7 Mil. National Building & Marketing Co's interest coverage for the quarter that ended in Dec. 2024 was 1.90. 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. National Building & Marketing Co interest coverage is 1.72, which is low.

The historical rank and industry rank for National Building & Marketing Co's Interest Coverage or its related term are showing as below:

SAU:9510' s Interest Coverage Range Over the Past 10 Years
Min: 1.4   Med: 10.04   Max: No Debt
Current: 1.72


SAU:9510's Interest Coverage is ranked worse than
77.4% of 447 companies
in the Steel industry
Industry Median: 5.26 vs SAU:9510: 1.72

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


National Building & Marketing Co Interest Coverage Historical Data

The historical data trend for National Building & Marketing 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.

National Building & Marketing Co Interest Coverage Chart

National Building & Marketing Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 3.32 13.90 36.58 1.40 1.72

National Building & Marketing Co Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 1.69 1.16 1.52 1.90

Competitive Comparison of National Building & Marketing Co's Interest Coverage

For the Steel subindustry, National Building & Marketing 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.


National Building & Marketing Co's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, National Building & Marketing Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where National Building & Marketing Co's Interest Coverage falls into.


;
;

National Building & Marketing 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.

National Building & Marketing 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, National Building & Marketing Co's Interest Expense was ﷼-55.5 Mil. Its Operating Income was ﷼95.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼254.6 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*95.513/-55.544
=1.72

National Building & Marketing Co's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, National Building & Marketing Co's Interest Expense was ﷼-28.7 Mil. Its Operating Income was ﷼54.6 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼254.6 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*54.62/-28.715
=1.90

* 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.

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


National Building & Marketing Co  (SAU:9510) 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 .


National Building & Marketing Co Interest Coverage Related Terms

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


National Building & Marketing Co Business Description

Traded in Other Exchanges
N/A
Address
Olaya Street, P.O.Box 401, Riyadh, SAU, 11312
National Building & Marketing Co is a Saudi-based company. It is involved in trading construction materials, general construction, real estate trading, real estate development, manufacturing of primary iron and steel products as well as manufacture of pipes, tubes and hollow shapes of iron and steel, extending communication cables, network extensions, installing and extending computer and communication networks, providing wholesale infrastructure services, analyzing systems, designing and programming special software, and providing communications and information network management services. The company's operating segments include Manufacturing of steel products, which generates maximum revenue, Contracting and development projects, Commercial, Information Technology, and Others.

National Building & Marketing Co Headlines

No Headlines