Goodman Group (ASX:GMG) Interest Coverage : 3.38 (As of Dec. 2023)

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What is Goodman Group 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. Goodman Group's Operating Income for the six months ended in Dec. 2023 was A$149 Mil. Goodman Group's Interest Expense for the six months ended in Dec. 2023 was A$-44 Mil. Goodman Group's interest coverage for the quarter that ended in Dec. 2023 was 3.38. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Goodman Group's Interest Coverage or its related term are showing as below:

ASX:GMG' s Interest Coverage Range Over the Past 10 Years
Min: 0.99 Med: 2.4 Max: 19.34
Current: 1.94

ASX:GMG's Interest Coverage is ranked worse than
70.19% of 1342 companies
in the Real Estate industry
Industry Median: 3.935 vs ASX:GMG: 1.94

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

Goodman Group Interest Coverage Historical Data

The historical data trend for Goodman Group'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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Goodman Group Interest Coverage Chart

Goodman Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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4.97

5.60

19.34

3.61

2.43

Goodman Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.04	6.08	3.70	1.51	3.38

Competitive Comparison of Goodman Group's Interest Coverage

For the Real Estate - Diversified subindustry, Goodman Group'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.

Goodman Group's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Goodman Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Goodman Group's Interest Coverage falls into.

Goodman Group 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.

Goodman Group's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Goodman Group's Interest Expense was A$-258 Mil. Its Operating Income was A$627 Mil. And its Long-Term Debt & Capital Lease Obligation was A$3,348 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	627.1	/	-257.7
	=	2.43

Goodman Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Goodman Group's Interest Expense was A$-44 Mil. Its Operating Income was A$149 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1,694 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	149.1	/	-44.1
	=	3.38

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

Goodman Group (ASX:GMG) 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 .

Goodman Group Interest Coverage Related Terms

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

Goodman Group (ASX:GMG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Goodman Group (ASX:GMG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

GMGSF:USA

Address

1-11 Hayes Road, The Hayesbery, Rosebery, Sydney, NSW, AUS, 2018

Website

https://www.goodman.com

Goodman Group develops and manages industrial property investments worldwide. Rather than taking all risks on its own balance sheet, most Goodman developments are on behalf of end-user tenants, and funds management clients. A typical deal involves purchasing land for a tenant who wants to occupy the site, and/or an investor who will own the asset via a Goodman investment vehicle. Goodman charges leasing fees for locking in tenants, and fees for managing the development. Completed projects reside in Goodman investment vehicles, and Goodman charges asset and investment management fees to investors, in return for collecting rent and managing the site. Goodman retains a minority stake in many projects, generating rental income and aligning its interests with its funds management clients.

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