ADNOC Logistics & Services (ADX:ADNOCLS) Interest Coverage : 3.80 (As of Dec. 2022)

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What is ADNOC Logistics & Services 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. ADNOC Logistics & Services's Operating Income for the six months ended in Dec. 2022 was د.إ1,540 Mil. ADNOC Logistics & Services's Interest Expense for the six months ended in Dec. 2022 was د.إ-405 Mil. ADNOC Logistics & Services's interest coverage for the quarter that ended in Dec. 2022 was 3.80. 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. ADNOC Logistics & Services plc interest coverage is 3.8, which is low.

The historical rank and industry rank for ADNOC Logistics & Services's Interest Coverage or its related term are showing as below:

ADX:ADNOCLS' s Interest Coverage Range Over the Past 10 Years
Min: 3.8 Med: 5.2 Max: 6.59
Current: 3.8

ADX:ADNOCLS's Interest Coverage is ranked worse than
61.17% of 819 companies
in the Transportation industry
Industry Median: 5.31 vs ADX:ADNOCLS: 3.80

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

ADNOC Logistics & Services Interest Coverage Historical Data

The historical data trend for ADNOC Logistics & Services'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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ADNOC Logistics & Services Interest Coverage Chart

ADNOC Logistics & Services Annual Data

Trend

Dec21

Dec22

Interest Coverage

6.59

3.80

ADNOC Logistics & Services Semi-Annual Data
	Dec21	Dec22
Interest Coverage	6.59	3.80

Competitive Comparison of ADNOC Logistics & Services's Interest Coverage

For the Marine Shipping subindustry, ADNOC Logistics & Services'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.

ADNOC Logistics & Services's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, ADNOC Logistics & Services's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ADNOC Logistics & Services's Interest Coverage falls into.

ADNOC Logistics & Services 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.

ADNOC Logistics & Services'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, ADNOC Logistics & Services's Interest Expense was د.إ-405 Mil. Its Operating Income was د.إ1,540 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ7,233 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	1540.173	/	-405.264
	=	3.80

ADNOC Logistics & Services's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the six months ended in Dec. 2022, ADNOC Logistics & Services's Interest Expense was د.إ-405 Mil. Its Operating Income was د.إ1,540 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ7,233 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	1540.173	/	-405.264
	=	3.80

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

ADNOC Logistics & Services (ADX:ADNOCLS) 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 .

ADNOC Logistics & Services Interest Coverage Related Terms

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

ADNOC Logistics & Services (ADX:ADNOCLS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » ADNOC Logistics & Services plc (ADX:ADNOCLS) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Abu Dhabi Global Market Square, Part of Level 28, 28, Al Sarab Tower, Al Maryah Island, Abu Dhabi, ARE, 764649

Website

https://www.adnoc.ae

ADNOC Logistics & Services plc provides fully-integrated, end-to-end services to ADNOC Group companies and our extensive range of customers in the global energy maritime industry. Its business is organised into six operating segments plus others namely tankers, gas carriers, dry bulk shipping (which includes containers), offshore logistics services, onshore logistics services, marine services, and others.

ADNOC Logistics & Services (ADX:ADNOCLS) Headlines

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