Australian Agricultural Co (ASX:AAC) Interest Coverage : 0 (At Loss) (As of Sep. 2023)

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What is Australian Agricultural 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. Australian Agricultural Co's Operating Income for the six months ended in Sep. 2023 was A$-140.1 Mil. Australian Agricultural Co's Interest Expense for the six months ended in Sep. 2023 was A$-11.9 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

ASX:AAC's Interest Coverage is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 8.44
* Ranked among companies with meaningful Interest Coverage only.

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

Australian Agricultural Co Interest Coverage Historical Data

The historical data trend for Australian Agricultural 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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Australian Agricultural Co Interest Coverage Chart

Australian Agricultural Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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3.89

4.97

14.48

0.77

Australian Agricultural Co Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial															16.92	11.76	10.48	-	-

Competitive Comparison of Australian Agricultural Co's Interest Coverage

For the Farm Products subindustry, Australian Agricultural 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.

Australian Agricultural Co's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Australian Agricultural Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Australian Agricultural Co's Interest Coverage falls into.

Australian Agricultural 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.

Australian Agricultural Co's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Australian Agricultural Co's Interest Expense was A$-17.1 Mil. Its Operating Income was A$13.1 Mil. And its Long-Term Debt & Capital Lease Obligation was A$417.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	13.111	/	-17.085
	=	0.77

Australian Agricultural Co's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Australian Agricultural Co's Interest Expense was A$-11.9 Mil. Its Operating Income was A$-140.1 Mil. And its Long-Term Debt & Capital Lease Obligation was A$444.4 Mil.

Australian Agricultural Co did not have earnings to cover the interest expense.

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

Australian Agricultural Co (ASX:AAC) 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 .

Australian Agricultural Co Interest Coverage Related Terms

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Australian Agricultural Co (ASX:AAC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Australian Agricultural Co Ltd (ASX:AAC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ASAGF:USA AAYYY:USA AY5:Germany

Address

76 Skyring Terrace, Level 1, Tower A, Gasworks Plaza, Newstead, Brisbane, QLD, AUS, 4006

Website

https://www.aaco.com.au

Australian Agricultural Co Ltd raises cattle in Australia to process and export all over the world. It specializes in grass-fed beef, grain-fed beef, and a Japanese-style beef. The company invests in research and technologies to ensure high quality and enhance productivity. The technologies may focus on performance evaluations, feed efficiency, or disease testing. More opportunities for gathering data exist because the cattle are owned throughout the entire supply chain. The company's processing facility works to get the beef out on a timely basis and will turn to third parties in times of a shortage. The company distributes the beef by tailoring its route-to-market model to capitalize on regional opportunities.