Turners Automotive Group (ASX:TRA) Interest Coverage : 0 (At Loss) (As of Sep. 2023)

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What is Turners Automotive 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. Turners Automotive Group's Operating Income for the six months ended in Sep. 2023 was A$-36.0 Mil. Turners Automotive Group's Interest Expense for the six months ended in Sep. 2023 was A$-12.4 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Turners Automotive Group Ltd interest coverage is 2.49, which is low.

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

ASX:TRA' s Interest Coverage Range Over the Past 10 Years
Min: 1.86 Med: 3.25 Max: 8.23
Current: 2.49

ASX:TRA's Interest Coverage is ranked worse than
77.89% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.77 vs ASX:TRA: 2.49

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

Turners Automotive Group Interest Coverage Historical Data

The historical data trend for Turners Automotive 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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Turners Automotive Group Interest Coverage Chart

Turners Automotive Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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3.25

Turners Automotive Group 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															-	-	-	8.68	-

Competitive Comparison of Turners Automotive Group's Interest Coverage

For the Auto & Truck Dealerships subindustry, Turners Automotive 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.

Turners Automotive Group's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Turners Automotive Group's Interest Coverage distribution charts can be found below:

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

Turners Automotive 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.

Turners Automotive Group'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, Turners Automotive Group's Interest Expense was A$-18.5 Mil. Its Operating Income was A$60.3 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	60.32	/	-18.535
	=	3.25

Turners Automotive Group's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Turners Automotive Group's Interest Expense was A$-12.4 Mil. Its Operating Income was A$-36.0 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0.0 Mil.

Turners Automotive Group did not have earnings to cover the interest expense.

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

Turners Automotive Group (ASX:TRA) 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 .

Turners Automotive Group Interest Coverage Related Terms

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

Turners Automotive Group (ASX:TRA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Turners Automotive Group Ltd (ASX:TRA) » Definitions » Interest Coverage

Comparable Companies

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TRA:New Zealand

Address

Level 5, 70 Shortland Street, PO Box 1232, Auckland, NZL, 1140

Website

https://www.turnersautogroup.co.nz

Turners Automotive Group Ltd is an integrated financial services group, primarily operating in the automotive sector. Business activity generally functions through Automotive Retail, Finance, Insurance, Credit management, Corporate, and Others. The company derives the majority of its revenue from Automotive retail which is engaged in remarketing (motor vehicles, trucks, heavy machinery, and commercial goods) and purchasing goods for sale and related asset-based finance to consumers. Geographically the group's business activities are located in New Zealand and Australia.

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