>
Switch to:

Emeco Holdings Interest Coverage

: 1.61 (As of Jun. 2021)
View and export this data going back to 2013. Start your Free Trial

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. Emeco Holdings's Operating Income for the six months ended in Jun. 2021 was $43.0 Mil. Emeco Holdings's Interest Expense for the six months ended in Jun. 2021 was $-26.7 Mil. Emeco Holdings's interest coverage for the quarter that ended in Jun. 2021 was 1.61. The higher the ratio, the stronger the company's financial strength is.

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

OTCPK:EOHDF' s Interest Coverage Range Over the Past 10 Years
Min: 0.14   Med: 1.88   Max: 4.94
Current: 1.25

0.14
4.94

OTCPK:EOHDF's Interest Coverage is ranked lower than
99.99% of the 182 Companies
in the Business Services industry.

( Industry Median: 11.92 vs. OTCPK:EOHDF: 1.25 )

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


Emeco Holdings Interest Coverage Historical Data

The historical data trend for Emeco Holdings'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.

* Premium members only.

Emeco Holdings Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.14 1.46 1.88 2.26 1.25

Emeco Holdings Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.15 2.24 2.29 1.01 1.61

Competitive Comparison

For the Rental & Leasing Services subindustry, Emeco Holdings'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.

   

Emeco Holdings Interest Coverage Distribution

For the Business Services industry and Industrials sector, Emeco Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Emeco Holdings's Interest Coverage falls into.



Emeco Holdings 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.


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

Emeco Holdings's Interest Coverage for the fiscal year that ended in Jun. 2021 is calculated as

Here, for the fiscal year that ended in Jun. 2021, Emeco Holdings's Interest Expense was $-67.5 Mil. Its Operating Income was $84.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $218.5 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2021 )/Interest Expense (A: Jun. 2021 )
=-1*84.107033639144/-67.488532110092
=1.25

Emeco Holdings's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the six months ended in Jun. 2021, Emeco Holdings's Interest Expense was $-26.7 Mil. Its Operating Income was $43.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $218.5 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*43.045871559633/-26.689602446483
=1.61

* 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.

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


Emeco Holdings  (OTCPK:EOHDF) 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 .


Emeco Holdings Interest Coverage Related Terms

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


Emeco Holdings Business Description

Emeco Holdings logo
Industry
Traded in Other Exchanges
Address
Level 3, 71 Walters Drive, Osborne Park, Perth, WA, AUS, 6017
Emeco Holdings Ltd owns and operates a fleet of original equipment manufacturer machines to deliver equipment rental solutions. Its reportable segments are Australian Rental that provides a wide range of earthmoving equipment to customers in Australia, Australian Workshops which is engaged in providing maintenance services to customers in Australia and Pit N Portal which provides a range of mining services solutions and associated services to customers in Australia.. The company generates a majority of its revenue from the Australian Rental Segment. Geographically, it generates a majority of its revenue from Australia.

Emeco Holdings Headlines

No Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)