Afine Investments (JSE:ANI) Interest Coverage : 3.75 (As of Aug. 2023)

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What is Afine 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. Afine Investments's Operating Income for the six months ended in Aug. 2023 was R20.21 Mil. Afine Investments's Interest Expense for the six months ended in Aug. 2023 was R-5.39 Mil. Afine Investments's interest coverage for the quarter that ended in Aug. 2023 was 3.75. The higher the ratio, the stronger the company's financial strength is.

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

JSE:ANI' s Interest Coverage Range Over the Past 10 Years
Min: 3.66 Med: 5.59 Max: No Debt
Current: 3.66

JSE:ANI's Interest Coverage is ranked better than
59.82% of 667 companies
in the REITs industry
Industry Median: 2.95 vs JSE:ANI: 3.66

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

Afine Investments Interest Coverage Historical Data

The historical data trend for Afine 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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Afine Investments Interest Coverage Chart

Afine Investments Annual Data

Trend

Feb21

Feb22

Feb23

Interest Coverage

No Debt

5.59

3.80

Afine Investments Semi-Annual Data
	Aug21	Feb22	Aug22	Feb23	Aug23
Interest Coverage	9.08	2.94	4.05	3.56	3.75

Competitive Comparison of Afine Investments's Interest Coverage

For the REIT - Specialty subindustry, Afine 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.

Afine Investments's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Afine Investments's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Afine Investments's Interest Coverage falls into.

Afine 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.

Afine Investments's Interest Coverage for the fiscal year that ended in Feb. 2023 is calculated as

Here, for the fiscal year that ended in Feb. 2023, Afine Investments's Interest Expense was R-10.01 Mil. Its Operating Income was R38.01 Mil. And its Long-Term Debt & Capital Lease Obligation was R94.26 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Feb. 2023 )	/	Interest Expense (A: Feb. 2023 )
	=	-1	*	38.012	/	-10.012
	=	3.80

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

Here, for the six months ended in Aug. 2023, Afine Investments's Interest Expense was R-5.39 Mil. Its Operating Income was R20.21 Mil. And its Long-Term Debt & Capital Lease Obligation was R97.85 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Aug. 2023 )	/	Interest Expense (Q: Aug. 2023 )
	=	-1	*	20.208	/	-5.385
	=	3.75

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

Afine Investments (JSE:ANI) 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 .

Afine Investments Interest Coverage Related Terms

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

Afine Investments (JSE:ANI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Afine Investments Ltd (JSE:ANI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Unit 4602, Greenways, Strand, Western Cape, ZAF, 7140

Website

https://www.afineinvestments.com

Afine Investments Ltd is a specialized commercial real estate. It holds a portfolio of income-generating immovable properties focused mainly on the petroleum sector. geographically company operates in Gauteng and North-West, Mpumalanga, and Western Cape Segment. Out of these geographical segment majority of revenue is generated from Gauteng and North-West.

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