Ghitha Holding PJSC (ADX:GHITHA) Interest Coverage : 2.60 (As of Sep. 2023)

Ghitha Holding PJSC Interest Coverage Chart

Ghitha Holding PJSC Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Jun21	Sep21	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial							23.17	6.63	12.20	1.81	2.60

Competitive Comparison of Ghitha Holding PJSC's Interest Coverage

For the Food Distribution subindustry, Ghitha 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.

Ghitha Holding PJSC's Interest Coverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Ghitha Holding PJSC's Interest Coverage distribution charts can be found below:

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

Ghitha 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Ghitha 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, Ghitha Holding PJSC's Interest Expense was د.إ-11 Mil. Its Operating Income was د.إ142 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ513 Mil.

Ghitha 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, Ghitha Holding PJSC's Interest Expense was د.إ-20 Mil. Its Operating Income was د.إ51 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ896 Mil.

* 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.

Ghitha Holding PJSC  (ADX:GHITHA) 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 .

Ghitha Holding PJSC Interest Coverage Related Terms

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Ghitha Holding PJSC (ADX:GHITHA) Business Description