Abu Dhabi Aviation Co (ADX:ADAVIATION) Interest Coverage : 9.41 (As of Dec. 2023)

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What is Abu Dhabi Aviation 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. Abu Dhabi Aviation Co's Operating Income for the three months ended in Dec. 2023 was د.إ128 Mil. Abu Dhabi Aviation Co's Interest Expense for the three months ended in Dec. 2023 was د.إ-14 Mil. Abu Dhabi Aviation Co's interest coverage for the quarter that ended in Dec. 2023 was 9.41. The higher the ratio, the stronger the company's financial strength is.

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

ADX:ADAVIATION' s Interest Coverage Range Over the Past 10 Years
Min: 4.72 Med: 9.18 Max: 13.08
Current: 9.06

ADX:ADAVIATION's Interest Coverage is ranked better than
63.25% of 819 companies
in the Transportation industry
Industry Median: 5.6 vs ADX:ADAVIATION: 9.06

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

Abu Dhabi Aviation Co Interest Coverage Historical Data

The historical data trend for Abu Dhabi Aviation 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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Abu Dhabi Aviation Co Interest Coverage Chart

Abu Dhabi Aviation Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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6.81

4.72

12.66

10.95

9.06

Abu Dhabi Aviation 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															7.66	9.24	9.04	8.58	9.41

Competitive Comparison of Abu Dhabi Aviation Co's Interest Coverage

For the Airports & Air Services subindustry, Abu Dhabi Aviation 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.

Abu Dhabi Aviation Co's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Abu Dhabi Aviation Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Abu Dhabi Aviation Co's Interest Coverage falls into.

Abu Dhabi Aviation 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.

Abu Dhabi Aviation 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, Abu Dhabi Aviation Co's Interest Expense was د.إ-51 Mil. Its Operating Income was د.إ464 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ504 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	463.941	/	-51.186
	=	9.06

Abu Dhabi Aviation Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Abu Dhabi Aviation Co's Interest Expense was د.إ-14 Mil. Its Operating Income was د.إ128 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ504 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	128.253	/	-13.628
	=	9.41

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

Abu Dhabi Aviation Co (ADX:ADAVIATION) 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 .

Abu Dhabi Aviation Co Interest Coverage Related Terms

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

Abu Dhabi Aviation Co (ADX:ADAVIATION) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Abu Dhabi Aviation Co (ADX:ADAVIATION) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

P.O. Box 2723, Abu Dhabi, ARE

Website

https://ada.ae

Abu Dhabi Aviation Co is a commercial airline operator based in the Middle East. Its key revenue-generating segment is that of helicopters and fixed-wing aircraft operations within the United Arab Emirates. Among its other business segments are Commercial Aircraft Operations, Air Cargo, Investments, Helicopter and fixed wing operations and others. The firm generates revenue from the Helicopter & fixed wing operations. Other sources of revenue include training of pilots, rental income from investment properties and other management consultancy services.

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