Uzma Bhd (XKLS:7250) Interest Coverage : 5.00 (As of Dec. 2023)

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What is Uzma Bhd 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. Uzma Bhd's Operating Income for the three months ended in Dec. 2023 was RM20.0 Mil. Uzma Bhd's Interest Expense for the three months ended in Dec. 2023 was RM-4.0 Mil. Uzma Bhd's interest coverage for the quarter that ended in Dec. 2023 was 5.00. 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. Uzma Bhd interest coverage is 4.37, which is low.

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

XKLS:7250' s Interest Coverage Range Over the Past 10 Years
Min: 0.58 Med: 3.51 Max: 19.1
Current: 4.37

XKLS:7250's Interest Coverage is ranked worse than
62.16% of 761 companies
in the Oil & Gas industry
Industry Median: 6.64 vs XKLS:7250: 4.37

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

Uzma Bhd Interest Coverage Historical Data

The historical data trend for Uzma Bhd'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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Uzma Bhd Interest Coverage Chart

Uzma Bhd Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

Get a 7-Day Free Trial

0.58

1.10

1.85

3.51

Uzma Bhd Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.04	2.37	6.78	4.93	5.00

Competitive Comparison of Uzma Bhd's Interest Coverage

For the Oil & Gas Integrated subindustry, Uzma Bhd'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.

Uzma Bhd's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Uzma Bhd's Interest Coverage distribution charts can be found below:

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

Uzma Bhd 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.

Uzma Bhd's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Uzma Bhd's Interest Expense was RM-18.2 Mil. Its Operating Income was RM63.8 Mil. And its Long-Term Debt & Capital Lease Obligation was RM151.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	63.769	/	-18.192
	=	3.51

Uzma Bhd's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Uzma Bhd's Interest Expense was RM-4.0 Mil. Its Operating Income was RM20.0 Mil. And its Long-Term Debt & Capital Lease Obligation was RM247.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	19.952	/	-3.994
	=	5.00

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

Uzma Bhd (XKLS:7250) 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 .

Uzma Bhd Interest Coverage Related Terms

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

Uzma Bhd (XKLS:7250) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Uzma Bhd (XKLS:7250) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

UZMA Tower, No. 2, Jalan PJU 8/8A, Damansara Perdana, Petaling Jaya, SGR, MYS, 47820

Website

https://www.uzmagroup.com

Uzma Bhd provides integrated solutions to the upstream sector across the exploration, development and production operations and the facilities/plant construction, operations, and maintenance of the downstream sector. It provides the full spectrum of oil and gas operational services and solutions. Uzma's offering includes solutions and services in the field of Geoscience and Petroleum Engineering Services, Drilling and well Services and Production Optimization and Operation Services. The company's segment includes O&G upstream services; Trading and other O&G services, and others. It generates maximum revenue from the O&G upstream services segment.

Uzma Bhd (XKLS:7250) Headlines

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