Eagers Automotive (ASX:APE) Interest Coverage : 9.44 (As of Dec. 2023)

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What is Eagers Automotive 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. Eagers Automotive's Operating Income for the six months ended in Dec. 2023 was A$280 Mil. Eagers Automotive's Interest Expense for the six months ended in Dec. 2023 was A$-30 Mil. Eagers Automotive's interest coverage for the quarter that ended in Dec. 2023 was 9.44. The higher the ratio, the stronger the company's financial strength is.

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

ASX:APE' s Interest Coverage Range Over the Past 10 Years
Min: 3.04 Med: 5.18 Max: 15.27
Current: 6.18

ASX:APE's Interest Coverage is ranked worse than
55.16% of 1037 companies
in the Vehicles & Parts industry
Industry Median: 7.7 vs ASX:APE: 6.18

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

Eagers Automotive Interest Coverage Historical Data

The historical data trend for Eagers Automotive'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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Eagers Automotive Interest Coverage Chart

Eagers Automotive Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.18

11.60

15.27

10.95

6.18

Eagers Automotive Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	5.83	67.38	4.51	9.44

Competitive Comparison of Eagers Automotive's Interest Coverage

For the Auto & Truck Dealerships subindustry, Eagers Automotive'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.

Eagers Automotive's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Eagers Automotive's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Eagers Automotive's Interest Coverage falls into.

Eagers Automotive 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.

Eagers Automotive'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, Eagers Automotive's Interest Expense was A$-88 Mil. Its Operating Income was A$541 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1,194 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	540.849	/	-87.544
	=	6.18

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

Here, for the six months ended in Dec. 2023, Eagers Automotive's Interest Expense was A$-30 Mil. Its Operating Income was A$280 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1,194 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	279.551	/	-29.619
	=	9.44

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

Eagers Automotive (ASX:APE) 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 .

Eagers Automotive Interest Coverage Related Terms

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

Eagers Automotive (ASX:APE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Eagers Automotive Ltd (ASX:APE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

56 Edmondstone Street, Bowen Hills, Fortitude Valley, P.O. Box 199, Brisbane, QLD, AUS, 4006

Website

https://www.eagersautomotive.com.au

Eagers Automotive is the largest automotive retailing group in the Australian market, with an estimated share of over 11% of new vehicle sales. The company offers a range of products and services, including the sale of new and used vehicles, vehicle repair services, and parts, among others. The company also facilitates vehicle financing through third-party providers. Additionally, Eagers operates a truck retailing business, offering a similar range of products and services.