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MJ Gleeson (LSE:GLE) Interest Coverage : 5.40 (As of Dec. 2023)


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What is MJ Gleeson 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. MJ Gleeson's Operating Income for the six months ended in Dec. 2023 was £8.8 Mil. MJ Gleeson's Interest Expense for the six months ended in Dec. 2023 was £-1.6 Mil. MJ Gleeson's interest coverage for the quarter that ended in Dec. 2023 was 5.40. The higher the ratio, the stronger the company's financial strength is.

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

LSE:GLE' s Interest Coverage Range Over the Past 10 Years
Min: 7.37   Med: 62.4   Max: 488.76
Current: 8.37


LSE:GLE's Interest Coverage is ranked worse than
59.72% of 72 companies
in the Homebuilding & Construction industry
Industry Median: 9.11 vs LSE:GLE: 8.37

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


MJ Gleeson Interest Coverage Historical Data

The historical data trend for MJ Gleeson'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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MJ Gleeson Interest Coverage Chart

MJ Gleeson Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 97.54 7.37 39.79 45.09 14.88

MJ Gleeson 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 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 47.84 41.78 19.88 11.84 5.40

Competitive Comparison of MJ Gleeson's Interest Coverage

For the Residential Construction subindustry, MJ Gleeson'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.


MJ Gleeson's Interest Coverage Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, MJ Gleeson's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MJ Gleeson's Interest Coverage falls into.



MJ Gleeson 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.

MJ Gleeson'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, MJ Gleeson's Interest Expense was £-2.2 Mil. Its Operating Income was £33.3 Mil. And its Long-Term Debt & Capital Lease Obligation was £3.9 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2023 )/Interest Expense (A: Jun. 2023 )
=-1*33.274/-2.236
=14.88

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

Here, for the six months ended in Dec. 2023, MJ Gleeson's Interest Expense was £-1.6 Mil. Its Operating Income was £8.8 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*8.76/-1.622
=5.40

* 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.


MJ Gleeson  (LSE:GLE) 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 .


MJ Gleeson Interest Coverage Related Terms

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


MJ Gleeson (LSE:GLE) Business Description

Traded in Other Exchanges
Address
6 Europa Court, Sheffield Business Park, Sheffield, GBR, S9 1XE
MJ Gleeson PLC is engaged in the business of homebuilding. It's business activities flow through two distinct divisions, Gleeson Homes and Gleeson Strategic Land. Gleeson Homes being the revenue earning segment of the two conducts all activities for the development and sale of residential property. The Strategic Land business includes conducting operations relating to enhancing the value of land and ensuring the value is achieved for the stakeholders. Its property offering is spread across the United Kingdom.

MJ Gleeson (LSE:GLE) Headlines

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