Ventia Services Group (ASX:VNT) Interest Coverage : 7.48 (As of Dec. 2023)

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What is Ventia Services 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 Operating Income by its Interest Expense. Ventia Services Group's Operating Income for the six months ended in Dec. 2023 was A$165 Mil. Ventia Services Group's Interest Expense for the six months ended in Dec. 2023 was A$-22 Mil. Ventia Services Group's interest coverage for the quarter that ended in Dec. 2023 was 7.48. The higher the ratio, the stronger the company's financial strength is.

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

ASX:VNT' s Interest Coverage Range Over the Past 10 Years
Min: 0.85 Med: 6.46 Max: 8.86
Current: 6.46

ASX:VNT's Interest Coverage is ranked worse than
51.97% of 1268 companies
in the Construction industry
Industry Median: 7.035 vs ASX:VNT: 6.46

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

Ventia Services Group Interest Coverage Historical Data

The historical data trend for Ventia Services 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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Ventia Services Group Interest Coverage Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

Interest Coverage

0.85

8.86

6.46

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	N/A	7.19	10.88	5.62	7.48

Competitive Comparison of Ventia Services Group's Interest Coverage

For the Infrastructure Operations subindustry, Ventia Services 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.

Ventia Services Group's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ventia Services Group's Interest Coverage distribution charts can be found below:

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

Ventia Services 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 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.

Ventia Services Group'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, Ventia Services Group's Interest Expense was A$-49 Mil. Its Operating Income was A$316 Mil. And its Long-Term Debt & Capital Lease Obligation was A$833 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	315.9	/	-48.9
	=	6.46

Ventia Services Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Ventia Services Group's Interest Expense was A$-22 Mil. Its Operating Income was A$165 Mil. And its Long-Term Debt & Capital Lease Obligation was A$833 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	165.2	/	-22.1
	=	7.48

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

Ventia Services Group (ASX:VNT) 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 .

Ventia Services Group Interest Coverage Related Terms

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

Ventia Services Group (ASX:VNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » Interest Coverage

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.