Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) Interest Coverage : 13.82 (As of Sep. 2023)

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What is Alpha Dhabi Holding PJSC 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. Alpha Dhabi Holding PJSC's Operating Income for the three months ended in Sep. 2023 was د.إ1,423 Mil. Alpha Dhabi Holding PJSC's Interest Expense for the three months ended in Sep. 2023 was د.إ-103 Mil. Alpha Dhabi Holding PJSC's interest coverage for the quarter that ended in Sep. 2023 was 13.82. The higher the ratio, the stronger the company's financial strength is.

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

ADX:ALPHADHABI' s Interest Coverage Range Over the Past 10 Years
Min: 8.74 Med: 13.36 Max: 47.56
Current: 8.74

ADX:ALPHADHABI's Interest Coverage is ranked better than
59.4% of 399 companies
in the Conglomerates industry
Industry Median: 5.15 vs ADX:ALPHADHABI: 8.74

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

Alpha Dhabi Holding PJSC Interest Coverage Historical Data

The historical data trend for Alpha Dhabi Holding PJSC'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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Alpha Dhabi Holding PJSC Interest Coverage Chart

Alpha Dhabi Holding PJSC Annual Data

Trend

Dec20

Dec21

Dec22

Interest Coverage

13.36

47.56

10.94

Alpha Dhabi Holding PJSC Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial									13.12	3.67	17.73	14.03	13.82

Competitive Comparison of Alpha Dhabi Holding PJSC's Interest Coverage

For the Conglomerates subindustry, Alpha Dhabi Holding PJSC'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.

Alpha Dhabi Holding PJSC's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Alpha Dhabi Holding PJSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Alpha Dhabi Holding PJSC's Interest Coverage falls into.

Alpha Dhabi Holding PJSC 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.

Alpha Dhabi Holding PJSC'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, Alpha Dhabi Holding PJSC's Interest Expense was د.إ-584 Mil. Its Operating Income was د.إ6,385 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ19,221 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	6384.89	/	-583.798
	=	10.94

Alpha Dhabi Holding PJSC's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Alpha Dhabi Holding PJSC's Interest Expense was د.إ-103 Mil. Its Operating Income was د.إ1,423 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ20,110 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	1422.594	/	-102.944
	=	13.82

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

Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) 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 .

Alpha Dhabi Holding PJSC Interest Coverage Related Terms

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Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

108, Al Muntazah Street, Office 1003, Level 10, TwoFour54 Building 6, P.O. Box 111059, Adjacent Park Rotana Hotel, Abu Dhabi, ARE

Website

https://www.alphadhabi.com

Alpha Dhabi Holding PJSC is an investment holding company in the UAE. It invests in five major verticals namely industrials, which relates to the providing of dredging and associated land reclamation works; healthcare, which includes hospital and medical laboratory management services and laboratory diagnostic services; Construction segment provides contracting services relating to saleable and residential buildings, infrastructure development and civil construction works; Real estate, which includes rental income from properties and income from investment in real estate companies or sale of real estate; and Services, which comprise management services, hospitality income as well as a variety of smaller ancillary activities. It generates the majority of its revenue from the UAE.

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