Advanced Technology Co KSCC (KUW:ATC) Interest Coverage

: 1.08 (As of Dec. 2023)

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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. Advanced Technology Co KSCC's Operating Income for the three months ended in Dec. 2023 was KWD3.4 Mil. Advanced Technology Co KSCC's Interest Expense for the three months ended in Dec. 2023 was KWD-3.2 Mil. Advanced Technology Co KSCC's interest coverage for the quarter that ended in Dec. 2023 was 1.08. 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. Advanced Technology Co KSCC interest coverage is 1.21, which is low.

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

KUW:ATC' s Interest Coverage Range Over the Past 10 Years
Min: 1.21 Med: 2.3 Max: No Debt
Current: 1.21

KUW:ATC's Interest Coverage is ranked worse than
89.87% of 79 companies
in the Medical Distribution industry
Industry Median: 9.85 vs KUW:ATC: 1.21

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

Advanced Technology Co KSCC Interest Coverage Historical Data

The historical data trend for Advanced Technology Co KSCC'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.

* Premium members only.

Advanced Technology Co KSCC Annual Data

Trend

Dec11

Dec12

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.63

2.11

2.04

2.05

1.21

Advanced Technology Co KSCC Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															1.71	3.56	0.25	0.36	1.08

Competitive Comparison

For the Medical Distribution subindustry, Advanced Technology Co KSCC'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.

Advanced Technology Co KSCC Interest Coverage Distribution

For the Medical Distribution industry and Healthcare sector, Advanced Technology Co KSCC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Advanced Technology Co KSCC's Interest Coverage falls into.

Advanced Technology Co KSCC 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.

Advanced Technology Co KSCC's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Advanced Technology Co KSCC's Interest Expense was KWD-10.8 Mil. Its Operating Income was KWD13.1 Mil. And its Long-Term Debt & Capital Lease Obligation was KWD60.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	13.117	/	-10.802
	=	1.21

Advanced Technology Co KSCC's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Advanced Technology Co KSCC's Interest Expense was KWD-3.2 Mil. Its Operating Income was KWD3.4 Mil. And its Long-Term Debt & Capital Lease Obligation was KWD60.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3.421	/	-3.158
	=	1.08

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

Advanced Technology Co KSCC (KUW:ATC) 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 .

Advanced Technology Co KSCC Interest Coverage Related Terms

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

Advanced Technology Co KSCC (KUW:ATC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » Advanced Technology Co KSCC (KUW:ATC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Salem Al Mubarak Street, ATC Tower, P.O.Box: 44558, Street 1 Opposite Layla Tower, Block 4, Salmiya, Hawali, Kuwait, KWT, 32060

Website

https://www.atc.com.kw

Advanced Technology Co KSCC is a medical equipment supplier to the Kuwait healthcare sector. Some of the services provided by the company are - Diagnostic imaging, Laboratory environmental management and Automation, Medical & surgical O.R solutions, Healthcare manpower services, and more. The firm operates in one business segment namely trading, installation, and maintenance of medical and healthcare-related products. It also engages in constructing, managing, and possessing hospitals, medical centers, clinics, and specialized labs. In addition, the firm offers a pharmacy license, and home care services.

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