Peter Warren Automotive Holdings (ASX:PWR) Interest Coverage : 3.66 (As of Dec. 2023)

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What is Peter Warren Automotive 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 Operating Income by its Interest Expense. Peter Warren Automotive Holdings's Operating Income for the six months ended in Dec. 2023 was A$52 Mil. Peter Warren Automotive Holdings's Interest Expense for the six months ended in Dec. 2023 was A$-14 Mil. Peter Warren Automotive Holdings's interest coverage for the quarter that ended in Dec. 2023 was 3.66. The higher the ratio, the stronger the company's financial strength is.

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

ASX:PWR' s Interest Coverage Range Over the Past 10 Years
Min: 4.19 Med: 6.67 Max: 17.08
Current: 4.19

ASX:PWR's Interest Coverage is ranked worse than
66.28% of 1035 companies
in the Vehicles & Parts industry
Industry Median: 7.98 vs ASX:PWR: 4.19

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

Peter Warren Automotive Holdings Interest Coverage Historical Data

The historical data trend for Peter Warren Automotive 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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Peter Warren Automotive Holdings Interest Coverage Chart

Peter Warren Automotive Holdings Annual Data

Trend

Jun21

Jun22

Jun23

Interest Coverage

6.67

17.08

6.08

Peter Warren Automotive Holdings Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial			15.76	18.15	7.76	4.97	3.66

Competitive Comparison of Peter Warren Automotive Holdings's Interest Coverage

For the Auto & Truck Dealerships subindustry, Peter Warren Automotive 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.

Peter Warren Automotive Holdings's Interest Coverage Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Peter Warren Automotive Holdings's Interest Coverage falls into.

Peter Warren Automotive 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 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.

Peter Warren Automotive Holdings's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Peter Warren Automotive Holdings's Interest Expense was A$-16 Mil. Its Operating Income was A$97 Mil. And its Long-Term Debt & Capital Lease Obligation was A$254 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	96.973	/	-15.946
	=	6.08

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

Here, for the six months ended in Dec. 2023, Peter Warren Automotive Holdings's Interest Expense was A$-14 Mil. Its Operating Income was A$52 Mil. And its Long-Term Debt & Capital Lease Obligation was A$274 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	51.804	/	-14.149
	=	3.66

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

Peter Warren Automotive Holdings (ASX:PWR) 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 .

Peter Warren Automotive Holdings Interest Coverage Related Terms

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Peter Warren Automotive Holdings (ASX:PWR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Peter Warren Automotive Holdings Ltd (ASX:PWR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

13 Hume Highway, Warwick Farm, Sydney, NSW, AUS, 2170

Website

https://www.peterwarren.com.au

Peter Warren Automotive Holdings Ltd is a dealership group operating in Australia. The company operates an integrated new and used car retailing business providing the full range of sales and support including parts, service, finance and insurance and aftermarket products to an extensive list of long-term customers, many of whom have purchased multiple vehicles over a life time. The company has two operating segments Vehicle Retailing and property segment, The company generates the majority of its revenue from the Vehicle Retailing segment, which offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products.