Ebos Group (NZSE:EBO) Interest Coverage

: 5.92 (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. Ebos Group's Operating Income for the six months ended in Dec. 2023 was NZ$262 Mil. Ebos Group's Interest Expense for the six months ended in Dec. 2023 was NZ$-44 Mil. Ebos Group's interest coverage for the quarter that ended in Dec. 2023 was 5.92. The higher the ratio, the stronger the company's financial strength is.

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

NZSE:EBO' s Interest Coverage Range Over the Past 10 Years
Min: 5.26 Med: 9.38 Max: 15.55
Current: 6.27

NZSE:EBO's Interest Coverage is ranked worse than
62.03% of 79 companies
in the Medical Distribution industry
Industry Median: 9.85 vs NZSE:EBO: 6.27

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

Ebos Group Interest Coverage Historical Data

The historical data trend for Ebos 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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Ebos Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

8.37

11.17

14.32

15.55

6.76

Ebos Group 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																11.39	18.75	6.87	6.66	5.92

Competitive Comparison

For the Medical Distribution subindustry, Ebos 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.

Ebos Group Interest Coverage Distribution

For the Medical Distribution industry and Healthcare sector, Ebos Group's Interest Coverage distribution charts can be found below:

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

Ebos 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.

Ebos Group's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Ebos Group's Interest Expense was NZ$-74 Mil. Its Operating Income was NZ$499 Mil. And its Long-Term Debt & Capital Lease Obligation was NZ$1,296 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	498.997	/	-73.793
	=	6.76

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

Here, for the six months ended in Dec. 2023, Ebos Group's Interest Expense was NZ$-44 Mil. Its Operating Income was NZ$262 Mil. And its Long-Term Debt & Capital Lease Obligation was NZ$1,731 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	262.011	/	-44.275
	=	5.92

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

Ebos Group (NZSE:EBO) 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 .

Ebos Group Interest Coverage Related Terms

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

Ebos Group (NZSE:EBO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » Ebos Group Ltd (NZSE:EBO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

EJG:Germany EBO:Australia

Address

108 Wrights Road, P.O. Box 411, Christchurch, STL, NZL, 8024

Website

https://www.ebosgroup.com

Ebos is the largest pharmaceutical wholesaler and distributor across Australia and New Zealand. It services community pharmacies and hospitals, which contribute around 60% and 30% of revenue respectively. Drug pricing and wholesale margins for PBS medicine are governed by the Australian government's Pharmaceutical Benefits Scheme, or PBS. Wholesale gross margins are capped at 7% for community pharmacy and 10% for hospitals, and ongoing price reform typically results in low single digit revenue growth. Aside from pharma distribution, Ebos operates an animal health product wholesale, manufacturing and retail business, as well as undertaking third party logistics services. These segments are smaller contributors to group revenue but due to the unregulated nature are higher-margin operations.

Ebos Group (NZSE:EBO) Headlines

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