Palestine Development & Investment Co (XPAE:PADICO) Interest Coverage : 0 (At Loss) (As of Dec. 2023)

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What is Palestine Development & Investment 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. Palestine Development & Investment Co's Operating Income for the three months ended in Dec. 2023 was $-0.87 Mil. Palestine Development & Investment Co's Interest Expense for the three months ended in Dec. 2023 was $-3.31 Mil. did not have earnings to cover the interest expense. 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. Palestine Development & Investment Cos earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Palestine Development & Investment Co's Interest Coverage or its related term are showing as below:

XPAE:PADICO' s Interest Coverage Range Over the Past 10 Years
Min: 0.51 Med: 1.77 Max: 3.15
Current: 0.51

XPAE:PADICO's Interest Coverage is ranked worse than
96.44% of 449 companies
in the Asset Management industry
Industry Median: 43.98 vs XPAE:PADICO: 0.51

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

Palestine Development & Investment Co Interest Coverage Historical Data

The historical data trend for Palestine Development & Investment 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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Palestine Development & Investment Co Interest Coverage Chart

Palestine Development & Investment Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.78

0.54

Palestine Development & Investment Co 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															0.94	1.12	0.56	0.47	-

Competitive Comparison of Palestine Development & Investment Co's Interest Coverage

For the Asset Management subindustry, Palestine Development & Investment 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.

Palestine Development & Investment Co's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Palestine Development & Investment Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Palestine Development & Investment Co's Interest Coverage falls into.

Palestine Development & Investment 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.

Palestine Development & Investment 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, Palestine Development & Investment Co's Interest Expense was $-15.53 Mil. Its Operating Income was $8.40 Mil. And its Long-Term Debt & Capital Lease Obligation was $221.46 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	8.404	/	-15.527
	=	0.54

Palestine Development & Investment Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Palestine Development & Investment Co's Interest Expense was $-3.31 Mil. Its Operating Income was $-0.87 Mil. And its Long-Term Debt & Capital Lease Obligation was $221.46 Mil.

Palestine Development & Investment Co did not have earnings to cover the interest expense.

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

Palestine Development & Investment Co (XPAE:PADICO) 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 .

Palestine Development & Investment Co Interest Coverage Related Terms

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

Palestine Development & Investment Co (XPAE:PADICO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Palestine Development & Investment Co (XPAE:PADICO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

P.O.Box 6181, Amman, JOR, 11118

Website

https://www.padico.com

Palestine Development & Investment Co is an investment and development company. It invests in real estate, telecommunications, tourism, industry, agriculture, infrastructure, financial services, and the environment sectors. The company's objective is to develop and encourage investment in various sectors and technical and consultancy services through the establishment of companies, joint ventures, and associations with other companies. The firm's investment strategy is based on sector diversification, long-term investment, and well-founded partnerships. It classifies its investments in subsidiary companies, affiliated companies, and other investments.

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