Alarum Technologies Ltd. American Depositary Share(Alar) Financials: Interest Coverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - interest coverage
This chart shows the historical trend of interest coverage for ALAR compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Interest Coverage
Definition: Interest coverage tells you how easily the company can pay interest on its debt using operating profits. It’s like asking: “Can the company comfortably make its loan payments, or is it barely scraping by?” The higher the ratio, the safer. A very low ratio means debt payments may strain the business, especially if profits drop.
Interpretation:
• In '2022', ALAR's interest coverage was -59.30, indicating the firm's ability to meet its interest obligations. Industry average for Computer Software: Prepackaged Software in '2022' stood at -0.31.
• In '2023', ALAR's interest coverage was -13.19, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2023' stood at -0.99. Industry average declined by 0.68 from previous year.
• In '2024', ALAR's interest coverage was 18.81, indicating the firm's ability to meet its interest obligations. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2024' stood at -0.61. Industry average increased by 0.38 compared to previous year.
Overall, ALAR's interest coverage has been volatile but showed an upward trend over the past 3 years.
Formula: Interest Coverage = EBIT / Interest Expense
Good Range: Minimum 3-5 desirable; below 1 is risky.