CIMIC Group (CIMIC Group) Interest Coverage : 3.18 (As of Dec. 2021)

View and export this data going back to . Start your Free Trial

What is CIMIC Group Interest Coverage?

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. CIMIC Group's Operating Income for the six months ended in Dec. 2021 was $132 Mil. CIMIC Group's Interest Expense for the six months ended in Dec. 2021 was $-41 Mil. CIMIC Group's interest coverage for the quarter that ended in Dec. 2021 was 3.18. The higher the ratio, the stronger the company's financial strength is.

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

LGTHF's Interest Coverage is not ranked ^*
in the Construction industry.
Industry Median: 7.055
* Ranked among companies with meaningful Interest Coverage only.

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

CIMIC Group Interest Coverage Historical Data

The historical data trend for CIMIC 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.

* Premium members only.

CIMIC Group Interest Coverage Chart

CIMIC Group Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Interest Coverage

Get a 7-Day Free Trial

9.17

8.68

7.48

2.91

CIMIC Group Semi-Annual Data
	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21
Interest Coverage	Get a 7-Day Free Trial															10.73	4.66	-	2.68	3.18

Competitive Comparison of CIMIC Group's Interest Coverage

For the Engineering & Construction subindustry, CIMIC 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.

CIMIC Group's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, CIMIC Group's Interest Coverage distribution charts can be found below:

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

CIMIC 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.

CIMIC Group's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, CIMIC Group's Interest Expense was $-90 Mil. Its Operating Income was $262 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,698 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2021 )	/	Interest Expense (A: Dec. 2021 )
	=	-1	*	262.089	/	-90.057
	=	2.91

CIMIC Group's Interest Coverage for the quarter that ended in Dec. 2021 is calculated as

Here, for the six months ended in Dec. 2021, CIMIC Group's Interest Expense was $-41 Mil. Its Operating Income was $132 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,698 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2021 )	/	Interest Expense (Q: Dec. 2021 )
	=	-1	*	131.903	/	-41.416
	=	3.18

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

CIMIC Group (OTCPK:LGTHF) 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 .

CIMIC Group Interest Coverage Related Terms

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

CIMIC Group (CIMIC Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » CIMIC Group Ltd (OTCPK:LGTHF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

177 Pacific Highway, Level 25, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.cimic.com.au

Cimic is Australia's largest contractor, providing engineering, construction, contract mining services to the infrastructure, mining, energy, and property sectors. The business structure consists of construction, contract mining, public-private partnerships, and property, along with 45%-owned Habtoor Leighton. Cimic has exited its Middle East business. ACS/Hochtief owns 79% of Cimic. Cimic will be compulsorily acquired by major shareholder Hochtief.