Bumi Armada Bhd (XKLS:5210) Interest Coverage : 4.75 (As of Dec. 2023)

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What is Bumi Armada Bhd 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. Bumi Armada Bhd's Operating Income for the three months ended in Dec. 2023 was RM372 Mil. Bumi Armada Bhd's Interest Expense for the three months ended in Dec. 2023 was RM-78 Mil. Bumi Armada Bhd's interest coverage for the quarter that ended in Dec. 2023 was 4.75. 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. Bumi Armada Bhd interest coverage is 2.75, which is low.

The historical rank and industry rank for Bumi Armada Bhd's Interest Coverage or its related term are showing as below:

XKLS:5210' s Interest Coverage Range Over the Past 10 Years
Min: 0.48 Med: 1.96 Max: 3.4
Current: 2.75

XKLS:5210's Interest Coverage is ranked worse than
76.52% of 758 companies
in the Oil & Gas industry
Industry Median: 6.575 vs XKLS:5210: 2.75

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

Bumi Armada Bhd Interest Coverage Historical Data

The historical data trend for Bumi Armada Bhd'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.

Bumi Armada Bhd Interest Coverage Chart

Bumi Armada Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.78

1.73

2.29

2.87

2.71

Bumi Armada Bhd Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.35	2.87	1.20	2.28	4.75

Competitive Comparison of Bumi Armada Bhd's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, Bumi Armada Bhd'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.

Bumi Armada Bhd's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Bumi Armada Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Bumi Armada Bhd's Interest Coverage falls into.

Bumi Armada Bhd 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.

Bumi Armada Bhd'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, Bumi Armada Bhd's Interest Expense was RM-337 Mil. Its Operating Income was RM914 Mil. And its Long-Term Debt & Capital Lease Obligation was RM2,129 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	913.896	/	-336.717
	=	2.71

Bumi Armada Bhd's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Bumi Armada Bhd's Interest Expense was RM-78 Mil. Its Operating Income was RM372 Mil. And its Long-Term Debt & Capital Lease Obligation was RM2,129 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	372.478	/	-78.335
	=	4.75

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

Bumi Armada Bhd (XKLS:5210) 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 .

Bumi Armada Bhd Interest Coverage Related Terms

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

Bumi Armada Bhd (XKLS:5210) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Bumi Armada Bhd (XKLS:5210) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

24, Jalan Perak, Level 21, Menara Perak, Kuala Lumpur, MYS, 50450

Website

https://www.bumiarmada.com

Bumi Armada Bhd is an international provider of offshore energy facilities and services. The company operates in two business segments. The Floating Production segment consists of Floating Production Storage Offloading and Floating Gas Solutions & Operations. The Offshore Marine Services segment consists of Offshore Support Vessel and Subsea Construction. The firm own, operate and provide FPSO vessels that are used for receiving hydrocarbons sourced from oilfields, focus on innovative solutions for the offshore liquefied natural gas industry; own, operate and charter vessels to provide support for exploration, development and production activities in the offshore oil and gas industry. Its geographical segments include Malaysia, Asia (excluding Malaysia), Africa, Europe, and Latin America.

Bumi Armada Bhd (XKLS:5210) Headlines

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