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Administradora Americana de Inversiones (XSGO:AAISA) Interest Coverage : 181.24 (As of Dec. 2023)


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What is Administradora Americana de Inversiones 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. Administradora Americana de Inversiones's Operating Income for the three months ended in Dec. 2023 was CLP13,083 Mil. Administradora Americana de Inversiones's Interest Expense for the three months ended in Dec. 2023 was CLP-72 Mil. Administradora Americana de Inversiones's interest coverage for the quarter that ended in Dec. 2023 was 181.24. 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. Administradora Americana de Inversiones SA has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Administradora Americana de Inversiones's Interest Coverage or its related term are showing as below:

XSGO:AAISA' s Interest Coverage Range Over the Past 10 Years
Min: 51.58   Med: 115.53   Max: 898.19
Current: 115.51


XSGO:AAISA's Interest Coverage is ranked better than
57.62% of 446 companies
in the Asset Management industry
Industry Median: 42.64 vs XSGO:AAISA: 115.51

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


Administradora Americana de Inversiones Interest Coverage Historical Data

The historical data trend for Administradora Americana de Inversiones'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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Administradora Americana de Inversiones Interest Coverage Chart

Administradora Americana de Inversiones Annual Data
Trend Dec21 Dec22 Dec23
Interest Coverage
898.19 51.58 115.53

Administradora Americana de Inversiones Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 349.44 163.23 142.97 - 181.24

Competitive Comparison of Administradora Americana de Inversiones's Interest Coverage

For the Asset Management subindustry, Administradora Americana de Inversiones'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.


Administradora Americana de Inversiones's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Administradora Americana de Inversiones's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Administradora Americana de Inversiones's Interest Coverage falls into.



Administradora Americana de Inversiones 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.

Administradora Americana de Inversiones'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, Administradora Americana de Inversiones's Interest Expense was CLP-272 Mil. Its Operating Income was CLP31,374 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP5,608 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*31374.499/-271.577
=115.53

Administradora Americana de Inversiones's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Administradora Americana de Inversiones's Interest Expense was CLP-72 Mil. Its Operating Income was CLP13,083 Mil. And its Long-Term Debt & Capital Lease Obligation was CLP5,608 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*13082.809/-72.185
=181.24

* 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.


Administradora Americana de Inversiones  (XSGO:AAISA) 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 .


Administradora Americana de Inversiones Interest Coverage Related Terms

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


Administradora Americana de Inversiones (XSGO:AAISA) Business Description

Traded in Other Exchanges
N/A
Address
Marchant Pereira 10, Floor 17, 16th Floor, Providencia, Santiago, CHL
Administradora Americana de Inversiones SA is a investment management firm. Its objective is to strengthen the international presence of the group in the pension sector and explore new investment opportunities in the region, giving the shareholders the possibility of participating in the development of new businesses.

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