Abu Dhabi Ship Building PJSC (ADX:ADSB) Interest Coverage

: 8.89 (As of Dec. 2022)

View and export this data going back to 2003. Start your Free Trial

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 Ship Building PJSC's Operating Income for the six months ended in Dec. 2022 was د.إ19.3 Mil. Abu Dhabi Ship Building PJSC's Interest Expense for the six months ended in Dec. 2022 was د.إ-2.2 Mil. Abu Dhabi Ship Building PJSC's interest coverage for the quarter that ended in Dec. 2022 was 8.89. The higher the ratio, the stronger the company's financial strength is.

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

ADX:ADSB' s Interest Coverage Range Over the Past 10 Years
Min: 0.45 Med: 51.91 Max: 206.36
Current: 8.89

ADX:ADSB's Interest Coverage is ranked better than
56.02% of 216 companies
in the Aerospace & Defense industry
Industry Median: 7.04 vs ADX:ADSB: 8.89

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 Ship Building PJSC Interest Coverage Historical Data

The historical data trend for Abu Dhabi Ship Building PJSC'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.

Abu Dhabi Ship Building PJSC Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

0.45

8.89

Abu Dhabi Ship Building PJSC Semi-Annual Data
	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
Interest Coverage													0.45	-	-	-	8.89

Competitive Comparison

For the Aerospace & Defense subindustry, Abu Dhabi Ship Building PJSC'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 Ship Building PJSC Interest Coverage Distribution

For the Aerospace & Defense industry and Industrials sector, Abu Dhabi Ship Building PJSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Abu Dhabi Ship Building PJSC's Interest Coverage falls into.

Abu Dhabi Ship Building PJSC 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 Ship Building PJSC's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Abu Dhabi Ship Building PJSC's Interest Expense was د.إ-2.2 Mil. Its Operating Income was د.إ19.3 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ8.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	19.254	/	-2.167
	=	8.89

Abu Dhabi Ship Building PJSC's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the six months ended in Dec. 2022, Abu Dhabi Ship Building PJSC's Interest Expense was د.إ-2.2 Mil. Its Operating Income was د.إ19.3 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ8.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	19.254	/	-2.167
	=	8.89

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

Abu Dhabi Ship Building PJSC (ADX:ADSB) 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 Ship Building PJSC Interest Coverage Related Terms

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

Abu Dhabi Ship Building PJSC (ADX:ADSB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Abu Dhabi Ship Building PJSC (ADX:ADSB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Musafah Industrial Area, P.O. Box 8922, Abu Dhabi, ARE

Website

https://www.adsb.ae

Abu Dhabi Ship Building PJSC is a shipbuilder and support services contractor locally and internationally. Its operating segments include New Build and Engineering; Small Boats; Military Repairs and Maintenance; Commercial Repairs and Maintenance and Combat System Integration. It generates maximum revenue from the New Build and Engineering services segment. It provides the design, engineering, research and development, construction, commissioning, test and trials, ILS, upgrades, conversions, and consultancy services for military, commercial, and leisure vessels in any construction material.

Abu Dhabi Ship Building PJSC (ADX:ADSB) Headlines

No Headlines