Americana Restaurants International (ADX:AMR) Interest Coverage : 4.63 (As of Dec. 2023)

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What is Americana Restaurants International 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. Americana Restaurants International's Operating Income for the three months ended in Dec. 2023 was د.إ140 Mil. Americana Restaurants International's Interest Expense for the three months ended in Dec. 2023 was د.إ-30 Mil. Americana Restaurants International's interest coverage for the quarter that ended in Dec. 2023 was 4.63. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Americana Restaurants International's Interest Coverage or its related term are showing as below:

ADX:AMR' s Interest Coverage Range Over the Past 10 Years
Min: 3.37 Med: 9.6 Max: 11.97
Current: 9.6

ADX:AMR's Interest Coverage is ranked better than
58.3% of 259 companies
in the Restaurants industry
Industry Median: 6.79 vs ADX:AMR: 9.60

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

Americana Restaurants International Interest Coverage Historical Data

The historical data trend for Americana Restaurants International'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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Americana Restaurants International Interest Coverage Chart

Americana Restaurants International Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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6.62

3.37

10.52

11.97

9.60

Americana Restaurants International Quarterly Data
	Dec19	Dec20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial								10.65	9.18	12.95	11.93	4.63

Competitive Comparison of Americana Restaurants International's Interest Coverage

For the Restaurants subindustry, Americana Restaurants International'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.

Americana Restaurants International's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Americana Restaurants International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Americana Restaurants International's Interest Coverage falls into.

Americana Restaurants International 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.

Americana Restaurants International'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, Americana Restaurants International's Interest Expense was د.إ-114 Mil. Its Operating Income was د.إ1,094 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ1,253 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1093.934	/	-113.911
	=	9.60

Americana Restaurants International's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Americana Restaurants International's Interest Expense was د.إ-30 Mil. Its Operating Income was د.إ140 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ1,253 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	139.728	/	-30.158
	=	4.63

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

Americana Restaurants International (ADX:AMR) 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 .

Americana Restaurants International Interest Coverage Related Terms

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

Americana Restaurants International (ADX:AMR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Americana Restaurants International PLC (ADX:AMR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

6015:Saudi

Address

Al Rayyan Complex, Al Nahda, 17 Floor, Tower A, Sharjah, ARE

Website

https://www.americanarestaurants.com

Americana Restaurants International PLC is a diversified, pan-regional restaurant platform operator. It operates iconic brands such as KFC, Pizza Hut, Hardee's, Krispy Kreme, and TGI Fridays, along with proprietary brands such as Wimpy and Chicken Tikka. The Group operates restaurants under a portfolio of different brands across key consumer verticals and occasions, including key Quick Service Restaurant (QSR) categories (chicken, burger, and pizza), fast casual, casual dining, indulgence, and coffee concepts. Its reportable business segments are; the Major Gulf Cooperation Council countries which include KSA, Kuwait, and UAE, Lower Gulf countries (comprising of Qatar, Oman, and Bahrain), North Africa (Egypt and Morocco), and Others (Kazakhstan, Iraq, Lebanon, and Jordan).