Pharos Energy (LSE:PHAR) Interest Coverage

: 11.95 (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. Pharos Energy's Operating Income for the six months ended in Dec. 2023 was £18.9 Mil. Pharos Energy's Interest Expense for the six months ended in Dec. 2023 was £-1.6 Mil. Pharos Energy's interest coverage for the quarter that ended in Dec. 2023 was 11.95. The higher the ratio, the stronger the company's financial strength is.

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

LSE:PHAR' s Interest Coverage Range Over the Past 10 Years
Min: 0.63 Med: 10.25 Max: 132.98
Current: 5.63

LSE:PHAR's Interest Coverage is ranked worse than
54.87% of 760 companies
in the Oil & Gas industry
Industry Median: 6.67 vs LSE:PHAR: 5.63

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

Pharos Energy Interest Coverage Historical Data

The historical data trend for Pharos Energy'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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Pharos Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.28

0.63

1.37

9.90

5.63

Pharos Energy 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																2.73	9.67	10.38	3.66	11.95

Competitive Comparison

For the Oil & Gas E&P subindustry, Pharos Energy'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.

Pharos Energy Interest Coverage Distribution

For the Oil & Gas industry and Energy sector, Pharos Energy's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Pharos Energy's Interest Coverage falls into.

Pharos Energy 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.

Pharos Energy'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, Pharos Energy's Interest Expense was £-6.6 Mil. Its Operating Income was £37.4 Mil. And its Long-Term Debt & Capital Lease Obligation was £8.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	37.367	/	-6.636
	=	5.63

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

Here, for the six months ended in Dec. 2023, Pharos Energy's Interest Expense was £-1.6 Mil. Its Operating Income was £18.9 Mil. And its Long-Term Debt & Capital Lease Obligation was £8.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	18.881	/	-1.58
	=	11.95

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

Pharos Energy (LSE:PHAR) 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 .

Pharos Energy Interest Coverage Related Terms

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Pharos Energy (LSE:PHAR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Pharos Energy PLC (LSE:PHAR) » Definitions » Interest Coverage

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Traded in Other Exchanges

SOCLF:USA PHARl:UK

Address

27/28 Eastcastle Street, Eastcastle House, London, GBR, W1W 8DH

Website

https://www.pharos.energy

Pharos Energy PLC is an independent oil and gas exploration and production company. All of the company's oil and gas revenue is derived from foreign countries which are Vietnam, China and Egypt. The majority of oil and gas revenue is earned in Vietnam.