Zimre Holdings (XZIM:ZIMR.ZW) Interest Coverage : 76.40 (As of Dec. 2023)

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What is Zimre Holdings 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 EBIT by its Interest Expense. Zimre Holdings's EBIT for the six months ended in Dec. 2023 was ZWL138,766 Mil. Zimre Holdings's Interest Expense for the six months ended in Dec. 2023 was ZWL-1,816 Mil. Zimre Holdings's interest coverage for the quarter that ended in Dec. 2023 was 76.40. 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. Zimre Holdings Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

XZIM:ZIMR.ZW' s Interest Coverage Range Over the Past 10 Years
Min: 27.69 Med: 75.37 Max: No Debt
Current: 171.08

XZIM:ZIMR.ZW's Interest Coverage is ranked better than
79.64% of 329 companies
in the Insurance industry
Industry Median: 14.62 vs XZIM:ZIMR.ZW: 171.08

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

Zimre Holdings Interest Coverage Historical Data

The historical data trend for Zimre Holdings'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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Zimre Holdings Interest Coverage Chart

Zimre Holdings Annual Data

Trend

Dec08

Dec09

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

27.69

88.44

55.75

62.29

171.08

Zimre Holdings Semi-Annual Data
	Dec09	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial								81.65	9,513.01	-	2,767.45	76.40

Competitive Comparison of Zimre Holdings's Interest Coverage

For the Insurance - Reinsurance subindustry, Zimre Holdings'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.

Zimre Holdings's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Zimre Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zimre Holdings's Interest Coverage falls into.

Zimre Holdings 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

Zimre Holdings'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, Zimre Holdings's Interest Expense was ZWL-1,882 Mil. Its EBIT was ZWL322,057 Mil. And its Long-Term Debt & Capital Lease Obligation was ZWL4,367 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	322056.766	/	-1882.493
	=	171.08

Zimre Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Zimre Holdings's Interest Expense was ZWL-1,816 Mil. Its EBIT was ZWL138,766 Mil. And its Long-Term Debt & Capital Lease Obligation was ZWL4,367 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	138765.745	/	-1816.262
	=	76.40

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

Zimre Holdings (XZIM:ZIMR.ZW) 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 .

Zimre Holdings Interest Coverage Related Terms

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

Zimre Holdings (XZIM:ZIMR.ZW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Zimre Holdings Ltd (XZIM:ZIMR.ZW) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Smatsatsa Office Park, 2nd Floor, D Block, P.O. Box 4839, Borrowdale, Stand Number 10667, Harare, ZWE

Website

https://www.zhl.co.zw

Zimre Holdings Ltd is a Zimbabwe-based investment holding company. The firm operates its business activities in five segments. The Reinsurance segment offers short-term reinsurance products and services to general insurance companies locally, regionally and internationally. The Life reassurance segment offers its services to life assurance companies and medical aid societies locally and regionally. The Property segment is engaged in leasing, developing, managing, selling and buying properties. General insurance offers short-term insurance products and services directly to policyholders locally. Life and Pension segment. The Reinsurance segment contributes to the majority of the company's revenue. Zimre has operations in Botswana, Malawi, Mozambique, South Africa, Zambia and Zimbabwe.

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