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Ashmore Group (LSE:ASHM) Interest Coverage : 137.50 (As of Jun. 2024)


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What is Ashmore Group 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. Ashmore Group's Operating Income for the six months ended in Jun. 2024 was £27.5 Mil. Ashmore Group's Interest Expense for the six months ended in Jun. 2024 was £-0.2 Mil. Ashmore Group's interest coverage for the quarter that ended in Jun. 2024 was 137.50. 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. Ashmore Group PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

LSE:ASHM' s Interest Coverage Range Over the Past 10 Years
Min: 239.67   Med: 5221.8   Max: No Debt
Current: 239.67


LSE:ASHM's Interest Coverage is ranked better than
61.89% of 454 companies
in the Asset Management industry
Industry Median: 55.505 vs LSE:ASHM: 239.67

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


Ashmore Group Interest Coverage Historical Data

The historical data trend for Ashmore Group'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.

Ashmore Group Interest Coverage Chart

Ashmore Group Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 443.60 326.25 422.25 323.33 239.67

Ashmore Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 525.00 361.00 248.00 444.00 137.50

Competitive Comparison of Ashmore Group's Interest Coverage

For the Asset Management subindustry, Ashmore Group'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.


Ashmore Group's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Ashmore Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ashmore Group's Interest Coverage falls into.



Ashmore Group 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.

Ashmore Group's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Ashmore Group's Interest Expense was £-0.3 Mil. Its Operating Income was £71.9 Mil. And its Long-Term Debt & Capital Lease Obligation was £4.5 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*71.9/-0.3
=239.67

Ashmore Group's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Ashmore Group's Interest Expense was £-0.2 Mil. Its Operating Income was £27.5 Mil. And its Long-Term Debt & Capital Lease Obligation was £4.5 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*27.5/-0.2
=137.50

* 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.

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


Ashmore Group  (LSE:ASHM) 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 .


Ashmore Group Interest Coverage Related Terms

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


Ashmore Group Business Description

Traded in Other Exchanges
Address
61 Aldwych, London, GBR, WC2B 4AE
Ashmore Group PLC is a value-oriented asset management firm that focuses its investments on emerging markets. It offers a diverse range of both traditional and alternative investment strategies to a global client base, including both institutional and retail investors. The company invests in sovereign debt instruments, currencies, corporate debt, equities, derivatives, private equity, real estate, distressed debt, and other special situations. The firm reports on changes in assets under management as the majority of its revenue is derived from management fees. The company also benefits from performance fees on its investments.

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