African Equity Empowerment Investments (JSE:AEE) Interest Coverage : 2.81 (As of Aug. 2023)

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What is African Equity Empowerment Investments 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. African Equity Empowerment Investments's Operating Income for the six months ended in Aug. 2023 was R12.2 Mil. African Equity Empowerment Investments's Interest Expense for the six months ended in Aug. 2023 was R-4.4 Mil. African Equity Empowerment Investments's interest coverage for the quarter that ended in Aug. 2023 was 2.81. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for African Equity Empowerment Investments's Interest Coverage or its related term are showing as below:

JSE:AEE' s Interest Coverage Range Over the Past 10 Years
Min: 0.37 Med: 2.8 Max: 4.89
Current: 0.37

JSE:AEE's Interest Coverage is ranked worse than
98.15% of 1619 companies
in the Software industry
Industry Median: 29.45 vs JSE:AEE: 0.37

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

African Equity Empowerment Investments Interest Coverage Historical Data

The historical data trend for African Equity Empowerment Investments'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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African Equity Empowerment Investments Interest Coverage Chart

African Equity Empowerment Investments Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Interest Coverage

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0.37

African Equity Empowerment Investments Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Interest Coverage	Get a 7-Day Free Trial															-	-	-	-	2.81

Competitive Comparison of African Equity Empowerment Investments's Interest Coverage

For the Information Technology Services subindustry, African Equity Empowerment Investments'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.

African Equity Empowerment Investments's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, African Equity Empowerment Investments's Interest Coverage distribution charts can be found below:

* The bar in red indicates where African Equity Empowerment Investments's Interest Coverage falls into.

African Equity Empowerment Investments 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.

African Equity Empowerment Investments's Interest Coverage for the fiscal year that ended in Aug. 2023 is calculated as

Here, for the fiscal year that ended in Aug. 2023, African Equity Empowerment Investments's Interest Expense was R-5.8 Mil. Its Operating Income was R2.1 Mil. And its Long-Term Debt & Capital Lease Obligation was R37.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Aug. 2023 )	/	Interest Expense (A: Aug. 2023 )
	=	-1	*	2.134	/	-5.815
	=	0.37

African Equity Empowerment Investments's Interest Coverage for the quarter that ended in Aug. 2023 is calculated as

Here, for the six months ended in Aug. 2023, African Equity Empowerment Investments's Interest Expense was R-4.4 Mil. Its Operating Income was R12.2 Mil. And its Long-Term Debt & Capital Lease Obligation was R37.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Aug. 2023 )	/	Interest Expense (Q: Aug. 2023 )
	=	-1	*	12.229	/	-4.359
	=	2.81

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

African Equity Empowerment Investments (JSE:AEE) 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 .

African Equity Empowerment Investments Interest Coverage Related Terms

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

African Equity Empowerment Investments (JSE:AEE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » African Equity Empowerment Investments Ltd (JSE:AEE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

3 Dock Road, Victoria & Alfred Waterfront, 1st Floor, Waterway House North, Cape Town, WC, ZAF, 8001

Website

https://www.aeei.co.za

African Equity Empowerment Investments Ltd is a black-owned and black-managed investment holding company. Its segments include Fishing and brands, Technology, Health and beauty, Events and tourism, and Corporate. It generates maximum revenue from the Technology segment. The company exports its products to African countries, India and Europe and the majority of the revenue comes from South Africa.