Atlantic American (Atlantic American) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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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 EBIT by its Interest Expense. Atlantic American's EBIT for the three months ended in Dec. 2023 was $-2.2 Mil. Atlantic American's Interest Expense for the three months ended in Dec. 2023 was $-0.9 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

AAME' s Interest Coverage Range Over the Past 10 Years
Min: 0.52 Med: 3.66 Max: 10.63
Current: 0.83

AAME's Interest Coverage is ranked worse than
95.03% of 322 companies
in the Insurance industry
Industry Median: 13.355 vs AAME: 0.83

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

Atlantic American Interest Coverage Historical Data

The historical data trend for Atlantic American'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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Atlantic American Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.81

10.63

4.82

2.07

0.83

Atlantic American Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.06	-	3.75	3.52	-

Competitive Comparison

For the Insurance - Life subindustry, Atlantic American'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.

Atlantic American Interest Coverage Distribution

For the Insurance industry and Financial Services sector, Atlantic American's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Atlantic American's Interest Coverage falls into.

Atlantic American 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

Atlantic American'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, Atlantic American's Interest Expense was $-3.3 Mil. Its EBIT was $2.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $33.7 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2.704	/	-3.269
	=	0.83

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

Here, for the three months ended in Dec. 2023, Atlantic American's Interest Expense was $-0.9 Mil. Its EBIT was $-2.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $33.7 Mil.

Atlantic American did not have earnings to cover the interest expense.

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

Atlantic American (NAS:AAME) 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 .

Atlantic American Interest Coverage Related Terms

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

Atlantic American (Atlantic American) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Atlantic American Corp (NAS:AAME) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

4370 Peachtree Road, N.E., Atlanta, GA, USA, 30319

Website

https://www.atlam.com

Atlantic American Corp operates in specialty markets within the life and health and property and casualty insurance industries. It provides property and casualty insurance including bodily injury and property damage liability coverage, uninsured motorist coverage, and physical damage coverage for commercial accounts. It also provides tailored business automobile insurance coverage, on a multi-year contract basis, to state governments and local municipalities. The company's life and health operations offer a variety of life and supplemental health products including ordinary and term life insurance, Medicare supplement, and other health insurance. It earns revenue from the collection of premiums and investment income.

Executives

Harriett J Robinson	director, 10 percent owner, other: Trustee under Rule 16a-8
Bankers Fidelity Life Insurance Co	other: Wholly owned subsidiary	4370 PEACHTREE ROAD NE, ATLANTA GA 30319
Jeffrey Ross Franklin	officer: CFO	4370 PEACHTREE ROAD NE, ATLANTA GA 30319
Mark E. Preisinger	director	C/O ATLANTIC AMERICAN CORPORATION, 4370 PEACHTREE ROAD, SUITE 200, ATLANTA GA 30319
D Keehln Wheeler	director	3731 WIEUCA ROAD, ATLANTA GA 30342
William H Whaley	director	3980 RANDALL MILL RD NW, ATLANTA GA 30327
Joseph M Scheerer	director	41 PARK AVENUE, APARTMENT #8H, NEW YORK NY 10016
Samuel E Hudgins	director
Edward E Elson	director
Dom H Wyant	director
J Mack Robinson	10 percent owner	4370 PEACHTREE RD, ATLANTA GA 30319
Robin Robinson Howell	director	3656 TUXEDO ROAD NW, ATLANTA GA 30305
Sample John G Jr	officer: Senior Vice President & CFO
Howell Hilton H Jr	director, officer: Chairman, President & CEO	4370 PEACHTREE ROAD, N.E., ATLANTA GA 30319
Scott G Thompson	director, officer: Pres & CEO Am. Sou. Ins. Co.