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Knowledge Tower Trading Co (SAU:9551) Interest Coverage : 5,230.00 (As of Sep. 2023)


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What is Knowledge Tower Trading Co 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. Knowledge Tower Trading Co's Operating Income for the six months ended in Sep. 2023 was ﷼5.23 Mil. Knowledge Tower Trading Co's Interest Expense for the six months ended in Sep. 2023 was ﷼-0.00 Mil. Knowledge Tower Trading Co's interest coverage for the quarter that ended in Sep. 2023 was 5,230.00. 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. Knowledge Tower Trading Co has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Knowledge Tower Trading Co's Interest Coverage or its related term are showing as below:

SAU:9551' s Interest Coverage Range Over the Past 10 Years
Min: 147.54   Med: 159.69   Max: 566.56
Current: 566.56


SAU:9551's Interest Coverage is ranked better than
93.44% of 762 companies
in the Retail - Cyclical industry
Industry Median: 7.85 vs SAU:9551: 566.56

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


Knowledge Tower Trading Co Interest Coverage Historical Data

The historical data trend for Knowledge Tower Trading Co'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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Knowledge Tower Trading Co Interest Coverage Chart

Knowledge Tower Trading Co Annual Data
Trend Mar21 Mar22 Mar23
Interest Coverage
147.54 159.69 358.12

Knowledge Tower Trading Co Semi-Annual Data
Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Interest Coverage Get a 7-Day Free Trial 430.00 - 691.00 - 5,230.00

Competitive Comparison of Knowledge Tower Trading Co's Interest Coverage

For the Specialty Retail subindustry, Knowledge Tower Trading Co'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.


Knowledge Tower Trading Co's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Knowledge Tower Trading Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Knowledge Tower Trading Co's Interest Coverage falls into.



Knowledge Tower Trading Co 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.

Knowledge Tower Trading Co's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Knowledge Tower Trading Co's Interest Expense was ﷼-0.02 Mil. Its Operating Income was ﷼6.09 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼0.17 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2023 )/Interest Expense (A: Mar. 2023 )
=-1*6.088/-0.017
=358.12

Knowledge Tower Trading Co's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Knowledge Tower Trading Co's Interest Expense was ﷼-0.00 Mil. Its Operating Income was ﷼5.23 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼0.00 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*5.23/-0.001
=5,230.00

* 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.


Knowledge Tower Trading Co  (SAU:9551) 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 .


Knowledge Tower Trading Co Interest Coverage Related Terms

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


Knowledge Tower Trading Co (SAU:9551) Business Description

Traded in Other Exchanges
N/A
Address
Ibn Yaqout Al-Hamawi Road, Al-Muraikbat District, Dammam, SAU, 7222 -32253
Knowledge Tower Trading Co is engaged in marketing and selling educational books for schools, universities, training institutes, and government educational institutions, developing educational programs for schools, providing electronic educational platforms, providing modern educational resources for training, and designing educational models.

Knowledge Tower Trading Co (SAU:9551) Headlines

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