El AL Israel Airlines (XTAE:ELAL) Interest Coverage : 11.12 (As of Sep. 2024)

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What is El AL Israel Airlines 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. El AL Israel Airlines's Operating Income for the three months ended in Sep. 2024 was ₪968 Mil. El AL Israel Airlines's Interest Expense for the three months ended in Sep. 2024 was ₪-87 Mil. El AL Israel Airlines's interest coverage for the quarter that ended in Sep. 2024 was 11.12. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for El AL Israel Airlines's Interest Coverage or its related term are showing as below:

XTAE:ELAL' s Interest Coverage Range Over the Past 10 Years
Min: 0.77 Med: 1.88 Max: 10.73
Current: 4.99

XTAE:ELAL's Interest Coverage is ranked worse than
54.33% of 819 companies
in the Transportation industry
Industry Median: 5.81 vs XTAE:ELAL: 4.99

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

El AL Israel Airlines Interest Coverage Historical Data

The historical data trend for El AL Israel Airlines'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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El AL Israel Airlines Interest Coverage Chart

El AL Israel Airlines Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.77

1.88

El AL Israel Airlines Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															2.55	2.28	5.89	2.90	11.12

Competitive Comparison of El AL Israel Airlines's Interest Coverage

For the Airlines subindustry, El AL Israel Airlines'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.

El AL Israel Airlines's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, El AL Israel Airlines's Interest Coverage distribution charts can be found below:

* The bar in red indicates where El AL Israel Airlines's Interest Coverage falls into.

El AL Israel Airlines 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.

El AL Israel Airlines'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, El AL Israel Airlines's Interest Expense was ₪-487 Mil. Its Operating Income was ₪917 Mil. And its Long-Term Debt & Capital Lease Obligation was ₪5,516 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	916.956	/	-487.054
	=	1.88

El AL Israel Airlines's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, El AL Israel Airlines's Interest Expense was ₪-87 Mil. Its Operating Income was ₪968 Mil. And its Long-Term Debt & Capital Lease Obligation was ₪4,694 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	967.638	/	-86.987
	=	11.12

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

El AL Israel Airlines (XTAE:ELAL) 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 .

El AL Israel Airlines Interest Coverage Related Terms

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El AL Israel Airlines Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » El AL Israel Airlines Ltd (XTAE:ELAL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ELALF:USA

Address

PO Box 41, Ben Gurion Airport, Lod, ISR, 7015001

Website

http://www.elal.co.il

El AL Israel Airlines Ltd is an international airline company which provides air transportation of passengers and cargo in Israel and overseas, by means of passenger aircraft and cargo aircraft. The company's passenger aircraft mainly operate scheduled flights as well as charter flights. The group is engaged in activities related to the air transport operations, such as the sale of duty-free products, food production, and supply mainly to the company's aircraft, providing security services, ongoing maintenance services and overall maintenance services to aircraft of other airlines at Ben Gurion Airport, and managing travel agencies abroad. The reporting segments of the company are air transport on passenger aircraft, and air transport on cargo plane.

El AL Israel Airlines Headlines

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