Avance Gas Holding (Avance Gas Holding) Interest Coverage

: 11.28 (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. Avance Gas Holding's Operating Income for the three months ended in Dec. 2023 was $66.6 Mil. Avance Gas Holding's Interest Expense for the three months ended in Dec. 2023 was $-5.9 Mil. Avance Gas Holding's interest coverage for the quarter that ended in Dec. 2023 was 11.28. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Avance Gas Holding's Interest Coverage or its related term are showing as below:

AVACF' s Interest Coverage Range Over the Past 10 Years
Min: 0.27 Med: 3.16 Max: 21.1
Current: 7.75

AVACF's Interest Coverage is ranked better than
54.01% of 761 companies
in the Oil & Gas industry
Industry Median: 6.71 vs AVACF: 7.75

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

Avance Gas Holding Interest Coverage Historical Data

The historical data trend for Avance Gas Holding'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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Avance Gas Holding Annual Data

Trend

Nov13

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.16

2.60

3.15

5.33

7.76

Avance Gas Holding 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															30.15	7.63	6.83	5.49	11.28

Competitive Comparison

For the Oil & Gas Midstream subindustry, Avance Gas Holding'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.

Avance Gas Holding Interest Coverage Distribution

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

* The bar in red indicates where Avance Gas Holding's Interest Coverage falls into.

Avance Gas Holding 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.

Avance Gas Holding'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, Avance Gas Holding's Interest Expense was $-23.5 Mil. Its Operating Income was $182.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $454.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	182.617	/	-23.529
	=	7.76

Avance Gas Holding's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Avance Gas Holding's Interest Expense was $-5.9 Mil. Its Operating Income was $66.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $454.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	66.624	/	-5.905
	=	11.28

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

Avance Gas Holding (OTCPK:AVACF) 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 .

Avance Gas Holding Interest Coverage Related Terms

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Avance Gas Holding (Avance Gas Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Avance Gas Holding Ltd (OTCPK:AVACF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AVANCEo:Sweden AGAS:Norway 0QTX:UK A07:Germany

Address

14 Par-la-Ville Road, 4th floor, PO Box HM 1593, Par-la-Ville Place, Hamilton, BMU, HM 08

Website

https://www.avancegas.com

Avance Gas Holding Ltd is engaged in the transportation of liquefied petroleum gas (LPG). It owns and operates very large gas carriers (VLGCs) providing transportation services to oil majors and traders of LPG on a global basis. It operates a fleet of vessels providing customers with global transportation services through the combination of the contract of affreightments and spot market voyages. The company transports liquefied petroleum to destinations in Europe, South America, India, and Asia, mainly loading the Middle East Gulf and the United States Gulf/United States East Coast. The company operates in a single segment that is liquefied petroleum gas.

Avance Gas Holding (Avance Gas Holding) Headlines

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