BOC Kenya (NAI:BOC) Interest Coverage : 178.49 (As of Dec. 2022)

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What is BOC Kenya 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. BOC Kenya's Operating Income for the six months ended in Dec. 2022 was KES189 Mil. BOC Kenya's Interest Expense for the six months ended in Dec. 2022 was KES-1 Mil. BOC Kenya's interest coverage for the quarter that ended in Dec. 2022 was 178.49. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. BOC Kenya PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

NAI:BOC' s Interest Coverage Range Over the Past 10 Years
Min: 17.05 Med: 147.92 Max: 587.82
Current: 178.49

NAI:BOC's Interest Coverage is ranked better than
89.01% of 1183 companies
in the Chemicals industry
Industry Median: 9.75 vs NAI:BOC: 178.49

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

BOC Kenya Interest Coverage Historical Data

The historical data trend for BOC Kenya'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.

* Premium members only.

BOC Kenya Interest Coverage Chart

BOC Kenya Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

Get a 7-Day Free Trial

40.69

17.05

94.27

123.96

178.49

BOC Kenya Semi-Annual Data
	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
Interest Coverage	Get a 7-Day Free Trial						40.69	17.05	94.27	123.96	178.49

Competitive Comparison of BOC Kenya's Interest Coverage

For the Chemicals subindustry, BOC Kenya'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.

BOC Kenya's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, BOC Kenya's Interest Coverage distribution charts can be found below:

* The bar in red indicates where BOC Kenya's Interest Coverage falls into.

BOC Kenya 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.

BOC Kenya'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, BOC Kenya's Interest Expense was KES-1 Mil. Its Operating Income was KES189 Mil. And its Long-Term Debt & Capital Lease Obligation was KES8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	188.664	/	-1.057
	=	178.49

BOC Kenya's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the six months ended in Dec. 2022, BOC Kenya's Interest Expense was KES-1 Mil. Its Operating Income was KES189 Mil. And its Long-Term Debt & Capital Lease Obligation was KES8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	188.664	/	-1.057
	=	178.49

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

BOC Kenya (NAI:BOC) 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 .

BOC Kenya Interest Coverage Related Terms

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

BOC Kenya (NAI:BOC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » BOC Kenya PLC (NAI:BOC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kitui Road, Off Kampala Road, P.O. Box 18010, Industrial Area, Nairobi, KEN, 00500

Website

https://www.boc.co.ke

BOC Kenya PLC is engaged in the manufacture and sale of industrial gases, medical gases, and welding products. The company's segment based on regions consists of Kenya, Tanzania, and Uganda. Its product range consists of Bulk gases, Packaged gases, and Engineering services. Bulk gases include liquid oxygen and liquid nitrogen. Packaged gases comprise medical gases, industrial gases, and special gas mixtures, and liquefied petroleum gas. The engineering services include supplies of medical equipment, construction of medical and other gas pipelines, liquefied petroleum gas installations, tanks and pipelines, industrial gas storage and pipeline installations, and related maintenance services. The company generates majority of its revenue from the sale of medical and industrial gases.