Enterprise Group (XGHA:EGL) Interest Coverage : 54.26 (As of Dec. 2022)

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What is Enterprise 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 EBIT by its Interest Expense. Enterprise Group's EBIT for the six months ended in Dec. 2022 was GHS286 Mil. Enterprise Group's Interest Expense for the six months ended in Dec. 2022 was GHS-5 Mil. Enterprise Group's interest coverage for the quarter that ended in Dec. 2022 was 54.26. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Enterprise Group Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

XGHA:EGL' s Interest Coverage Range Over the Past 10 Years
Min: 13.93 Med: 33.05 Max: 54.26
Current: 54.26

XGHA:EGL's Interest Coverage is ranked better than
71.83% of 323 companies
in the Insurance industry
Industry Median: 13.52 vs XGHA:EGL: 54.26

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

Enterprise Group Interest Coverage Historical Data

The historical data trend for Enterprise 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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Enterprise Group Interest Coverage Chart

Enterprise Group Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

Get a 7-Day Free Trial

13.93

18.40

39.02

51.15

54.26

Enterprise Group Semi-Annual Data
	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
Interest Coverage	Get a 7-Day Free Trial									13.93	18.40	39.02	51.15	54.26

Competitive Comparison of Enterprise Group's Interest Coverage

For the Insurance - Life subindustry, Enterprise 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.

Enterprise Group's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Enterprise Group's Interest Coverage distribution charts can be found below:

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

Enterprise 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

Enterprise Group's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Enterprise Group's Interest Expense was GHS-5 Mil. Its EBIT was GHS286 Mil. And its Long-Term Debt & Capital Lease Obligation was GHS17 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	286.361	/	-5.278
	=	54.26

Enterprise Group's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the six months ended in Dec. 2022, Enterprise Group's Interest Expense was GHS-5 Mil. Its EBIT was GHS286 Mil. And its Long-Term Debt & Capital Lease Obligation was GHS17 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	286.361	/	-5.278
	=	54.26

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

Enterprise Group (XGHA:EGL) 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 .

Enterprise Group Interest Coverage Related Terms

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

Enterprise Group (XGHA:EGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Enterprise Group Ltd (XGHA:EGL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Mayor Road, Ridge West, Accra, Advantage Place, Accra, GHA, PMB 150

Website

https://www.myenterprisegroup.io

Enterprise Group Ltd is engaged in the business of investments, life, non-life and health insurance underwriting, pensions funds management, provision of funeral services and real estate development and management. It also underwrites insurance risks, associated with death, disability, health, property, and liability. The group is organized into six operating segments. These segments are Non-life insurance business; Life assurance business; Pension administration; Real estate; Funeral services; and Investments. The company derives its revenues from Life assurance business.