People's Insurance (COL:PINS.N0000) Interest Coverage : 13.12 (As of Sep. 2023)

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What is People's Insurance 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 EBIT by its Interest Expense. People's Insurance's EBIT for the three months ended in Sep. 2023 was රු239 Mil. People's Insurance's Interest Expense for the three months ended in Sep. 2023 was රු-18 Mil. People's Insurance's interest coverage for the quarter that ended in Sep. 2023 was 13.12. The higher the ratio, the stronger the company's financial strength is.

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

COL:PINS.N0000' s Interest Coverage Range Over the Past 10 Years
Min: 1.28 Med: 35.97 Max: 102.13
Current: 13.99

COL:PINS.N0000's Interest Coverage is ranked better than
50.46% of 323 companies
in the Insurance industry
Industry Median: 13.52 vs COL:PINS.N0000: 13.99

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

People's Insurance Interest Coverage Historical Data

The historical data trend for People's Insurance'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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People's Insurance Interest Coverage Chart

People's Insurance Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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1.28

35.97

84.65

102.13

26.72

People's Insurance Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															25.16	12.21	16.17	14.66	13.12

Competitive Comparison of People's Insurance's Interest Coverage

For the Insurance - Property & Casualty subindustry, People's Insurance'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.

People's Insurance's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, People's Insurance's Interest Coverage distribution charts can be found below:

* The bar in red indicates where People's Insurance's Interest Coverage falls into.

People's Insurance 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

People's Insurance'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, People's Insurance's Interest Expense was රු-39 Mil. Its EBIT was රු1,039 Mil. And its Long-Term Debt & Capital Lease Obligation was රු343 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	1039.159	/	-38.884
	=	26.72

People's Insurance's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, People's Insurance's Interest Expense was රු-18 Mil. Its EBIT was රු239 Mil. And its Long-Term Debt & Capital Lease Obligation was රු0 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	238.83	/	-18.206
	=	13.12

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

People's Insurance (COL:PINS.N0000) 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 .

People's Insurance Interest Coverage Related Terms

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

People's Insurance (COL:PINS.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » People's Insurance PLC (COL:PINS.N0000) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Number 07, Havelock Road, Colombo, LKA, 05

Website

https://www.peoplesinsurance.lk

People's Insurance PLC operates as a non-life insurance provider. The principal activity of the Company is carrying out non-life (general) insurance business for both individual and corporate customers. It operates through Motor, Marine, Fire, and Miscellaneous insurance segments. Motor insurance generates most of the revenue for a firm which consists of cover for motor vehicles against loss or damage caused by accidents, fire and theft and legal liability to third parties in the event of bodily injuries or property damage.

People's Insurance (COL:PINS.N0000) Headlines

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