IDP Education (ASX:IEL) Interest Coverage : 13.35 (As of Dec. 2023)

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What is IDP Education 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. IDP Education's Operating Income for the six months ended in Dec. 2023 was A$151 Mil. IDP Education's Interest Expense for the six months ended in Dec. 2023 was A$-11 Mil. IDP Education's interest coverage for the quarter that ended in Dec. 2023 was 13.35. The higher the ratio, the stronger the company's financial strength is.

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

ASX:IEL' s Interest Coverage Range Over the Past 10 Years
Min: 16.83 Med: 49.78 Max: 486.48
Current: 16.83

ASX:IEL's Interest Coverage is ranked better than
51.65% of 182 companies
in the Education industry
Industry Median: 15.495 vs ASX:IEL: 16.83

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

IDP Education Interest Coverage Historical Data

The historical data trend for IDP Education'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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IDP Education Interest Coverage Chart

IDP Education Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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49.34

69.40

21.85

50.22

22.19

IDP Education Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial												22.68	-	19.26	27.40	13.35

Competitive Comparison of IDP Education's Interest Coverage

For the Education & Training Services subindustry, IDP Education'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.

IDP Education's Interest Coverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, IDP Education's Interest Coverage distribution charts can be found below:

* The bar in red indicates where IDP Education's Interest Coverage falls into.

IDP Education 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.

IDP Education's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, IDP Education's Interest Expense was A$-10 Mil. Its Operating Income was A$230 Mil. And its Long-Term Debt & Capital Lease Obligation was A$305 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	230.217	/	-10.375
	=	22.19

IDP Education's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, IDP Education's Interest Expense was A$-11 Mil. Its Operating Income was A$151 Mil. And its Long-Term Debt & Capital Lease Obligation was A$379 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	151.208	/	-11.33
	=	13.35

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

IDP Education (ASX:IEL) 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 .

IDP Education Interest Coverage Related Terms

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

IDP Education (ASX:IEL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » IDP Education Ltd (ASX:IEL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IDPUF:USA 03F:Germany

Address

697 Collins Street, Level 10, Docklands, VIC, AUS, 3008

Website

https://www.idp.com

IDP Education is a global leader in English language testing and student placement services, constituting 64% and 27% of fiscal 2022 group revenue, respectively. Additionally, IDP operates English language schools, organizes education events and delivers consultancy services to education institutions, which constitutes the remainder of group revenue. Originally established in Australia as an aid body for Southeast Asia, today IDP operates one of the world's most widely accepted English language tests and one of the world's largest student placement services businesses, predominantly connecting prospective migrants from India and China to Australia, Canada, and the United Kingdom.

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