Lynch Group Holdings (ASX:LGL) Interest Coverage : 0.43 (As of Dec. 2024)

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What is Lynch Group Holdings 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. Lynch Group Holdings's Operating Income for the six months ended in Dec. 2024 was A$1.5 Mil. Lynch Group Holdings's Interest Expense for the six months ended in Dec. 2024 was A$-3.5 Mil. Lynch Group Holdings's interest coverage for the quarter that ended in Dec. 2024 was 0.43. The higher the ratio, the stronger the company's financial strength is.

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

ASX:LGL' s Interest Coverage Range Over the Past 10 Years
Min: 2.79 Med: 7.32 Max: 14.54
Current: 2.79

ASX:LGL's Interest Coverage is ranked worse than
76.88% of 1479 companies
in the Consumer Packaged Goods industry
Industry Median: 8.76 vs ASX:LGL: 2.79

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

Lynch Group Holdings Interest Coverage Historical Data

The historical data trend for Lynch Group Holdings'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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Lynch Group Holdings Interest Coverage Chart

Lynch Group Holdings Annual Data

Trend

Jun21

Jun22

Jun23

Jun24

Interest Coverage

9.26

14.54

5.37

3.68

Lynch Group Holdings Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Interest Coverage	Get a 7-Day Free Trial				-	18.71	1.36	13.75	0.43

Competitive Comparison of Lynch Group Holdings's Interest Coverage

For the Farm Products subindustry, Lynch Group Holdings'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.

Lynch Group Holdings's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lynch Group Holdings's Interest Coverage distribution charts can be found below:

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

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Lynch Group Holdings 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.

Lynch Group Holdings's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Lynch Group Holdings's Interest Expense was A$-4.1 Mil. Its Operating Income was A$14.9 Mil. And its Long-Term Debt & Capital Lease Obligation was A$90.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2024 )	/	Interest Expense (A: Jun. 2024 )
	=	-1	*	14.908	/	-4.055
	=	3.68

Lynch Group Holdings's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Lynch Group Holdings's Interest Expense was A$-3.5 Mil. Its Operating Income was A$1.5 Mil. And its Long-Term Debt & Capital Lease Obligation was A$88.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	1.498	/	-3.516
	=	0.43

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

Lynch Group Holdings (ASX:LGL) 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 .

Lynch Group Holdings Interest Coverage Related Terms

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

Lynch Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Lynch Group Holdings Ltd (ASX:LGL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

8b Williamson Road, Ingleburn, Sydney, NSW, AUS, 2565

Website

https://www.lynchgroup.com.au

Lynch Group Holdings Ltd is a vertically integrated wholesale floral company whose farms cover the entire process of planting, growing, merchandising, and selling flowers and potted plants to supermarket chains and commercial outlets throughout Australia and China. The Group is organized into two operating segments Australia, which operates a vertically integrated production farm and wholesale operation in Australia; and China segment, which segment operates a production farm and distribution operation in China, supplying the domestic China market as well as the Australian segment. The company generates the majority of its revenue from the Australia segment.