Clydestone Ghana (XGHA:CLYD) Interest Coverage : 0 (At Loss) (As of Jun. 2023)

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What is Clydestone Ghana 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. Clydestone Ghana's Operating Income for the three months ended in Jun. 2023 was GHS-0.35 Mil. Clydestone Ghana's Interest Expense for the three months ended in Jun. 2023 was GHS0.06 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Clydestone Ghana PLC interest coverage is 1.89, which is low.

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

XGHA:CLYD' s Interest Coverage Range Over the Past 10 Years
Min: 0.44 Med: 5.05 Max: 13.71
Current: 1.89

XGHA:CLYD's Interest Coverage is ranked worse than
90.18% of 1619 companies
in the Software industry
Industry Median: 29.45 vs XGHA:CLYD: 1.89

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

Clydestone Ghana Interest Coverage Historical Data

The historical data trend for Clydestone Ghana'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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Clydestone Ghana Interest Coverage Chart

Clydestone Ghana Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

Get a 7-Day Free Trial

13.71

4.60

0.51

0.44

Clydestone Ghana Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Interest Coverage	Get a 7-Day Free Trial															-	-	-	4.51	-

Competitive Comparison of Clydestone Ghana's Interest Coverage

For the Information Technology Services subindustry, Clydestone Ghana'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.

Clydestone Ghana's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Clydestone Ghana's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Clydestone Ghana's Interest Coverage falls into.

Clydestone Ghana 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.

Clydestone Ghana'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, Clydestone Ghana's Interest Expense was GHS-0.29 Mil. Its Operating Income was GHS0.13 Mil. And its Long-Term Debt & Capital Lease Obligation was GHS0.56 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	0.129	/	-0.29
	=	0.44

Clydestone Ghana's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, Clydestone Ghana's Interest Expense was GHS0.06 Mil. Its Operating Income was GHS-0.35 Mil. And its Long-Term Debt & Capital Lease Obligation was GHS0.79 Mil.

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

Clydestone Ghana (XGHA:CLYD) 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 .

Clydestone Ghana Interest Coverage Related Terms

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

Clydestone Ghana (XGHA:CLYD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Clydestone Ghana PLC (XGHA:CLYD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 14 Adebeto Close, P.O. Box CT 1003, North Labone, Accra, GHA

Website

https://www.clydestone.com

Clydestone Ghana Ltd is an information and communications technology company with offices in Ghana, Nigeria, and Kenya. The company has developed cutting-edge solutions in the areas of financial document processing, remittance processing, and transaction switching. The company provides IT solutions in Africa, currently providing Cheque Truncation Systems to Ghana's Banks. Its product list includes G-Switch, G-Secure, Remita, UnionPay, Automated Cheque Clearing, ATM and Cash Processing, Multi-vendor ATM Software, and Multi-factor Authentication.

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