International Hotel Investments (MAL:IHI) Interest Coverage : 1.30 (As of Dec. 2023)

View and export this data going back to 2000. Start your Free Trial

What is International Hotel Investments 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. International Hotel Investments's Operating Income for the six months ended in Dec. 2023 was €27.9 Mil. International Hotel Investments's Interest Expense for the six months ended in Dec. 2023 was €-21.4 Mil. International Hotel Investments's interest coverage for the quarter that ended in Dec. 2023 was 1.30. 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. International Hotel Investments PLCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for International Hotel Investments's Interest Coverage or its related term are showing as below:

MAL:IHI' s Interest Coverage Range Over the Past 10 Years
Min: 0.69 Med: 0.85 Max: 1.6
Current: 0.75

MAL:IHI's Interest Coverage is ranked worse than
89.98% of 609 companies
in the Travel & Leisure industry
Industry Median: 5.14 vs MAL:IHI: 0.75

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

International Hotel Investments Interest Coverage Historical Data

The historical data trend for International Hotel Investments'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.

International Hotel Investments Interest Coverage Chart

International Hotel Investments Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.39

0.80

0.84

International Hotel Investments 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															0.99	0.23	1.28	0.28	1.30

Competitive Comparison of International Hotel Investments's Interest Coverage

For the Lodging subindustry, International Hotel Investments'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.

International Hotel Investments's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, International Hotel Investments's Interest Coverage distribution charts can be found below:

* The bar in red indicates where International Hotel Investments's Interest Coverage falls into.

International Hotel Investments 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.

International Hotel Investments'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, International Hotel Investments's Interest Expense was €-38.8 Mil. Its Operating Income was €32.7 Mil. And its Long-Term Debt & Capital Lease Obligation was €668.5 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	32.733	/	-38.754
	=	0.84

International Hotel Investments's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, International Hotel Investments's Interest Expense was €-21.4 Mil. Its Operating Income was €27.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €668.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	27.944	/	-21.446
	=	1.30

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

International Hotel Investments (MAL:IHI) 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 .

International Hotel Investments Interest Coverage Related Terms

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

International Hotel Investments (MAL:IHI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » International Hotel Investments PLC (MAL:IHI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

22 Europa Centre, Floriana, MLT, FRN 1400

Website

https://www.corinthiagroup.com

International Hotel Investments PLC operates in the hotel industry. The company is engaged in the ownership, development and operation of hotels, leisure facilities and other activities related to the tourism industry. It has operations spread across various geographical locations which include Malta, Lisbon; Budapest; St. Petersburg; Prague; London, and Tripoli. The company derives a most of revenue from London.