Rain Industries (BOM:500339) Interest Coverage : 0.07 (As of Dec. 2023)

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What is Rain Industries 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. Rain Industries's Operating Income for the six months ended in Dec. 2023 was ₹173 Mil. Rain Industries's Interest Expense for the six months ended in Dec. 2023 was ₹-2,453 Mil. Rain Industries's interest coverage for the quarter that ended in Dec. 2023 was 0.07. The higher the ratio, the stronger the company's financial strength is.

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

BOM:500339' s Interest Coverage Range Over the Past 10 Years
Min: 0.07 Med: 1.96 Max: 5.95
Current: 0.07

BOM:500339's Interest Coverage is ranked worse than
99.75% of 1177 companies
in the Chemicals industry
Industry Median: 9.89 vs BOM:500339: 0.07

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

Rain Industries Interest Coverage Historical Data

The historical data trend for Rain Industries'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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Rain Industries Interest Coverage Chart

Rain Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.94

1.98

3.39

5.95

1.14

Rain Industries Semi-Annual Data
	Mar05	Mar06	Mar07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22	Dec23
Interest Coverage	Get a 7-Day Free Trial														2.69	1.59	3.00	3.13	0.07

Competitive Comparison of Rain Industries's Interest Coverage

For the Chemicals subindustry, Rain Industries'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.

Rain Industries's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Rain Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Rain Industries's Interest Coverage falls into.

Rain Industries 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.

Rain Industries'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, Rain Industries's Interest Expense was ₹-7,942 Mil. Its Operating Income was ₹9,027 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹77,216 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	9027.33	/	-7941.77
	=	1.14

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

Here, for the six months ended in Dec. 2023, Rain Industries's Interest Expense was ₹-2,453 Mil. Its Operating Income was ₹173 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹77,216 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	173.46	/	-2453.39
	=	0.07

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

Rain Industries (BOM:500339) 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 .

Rain Industries Interest Coverage Related Terms

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

Rain Industries (BOM:500339) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Rain Industries Ltd (BOM:500339) » Definitions » Interest Coverage

Traded in Other Exchanges

RAIN:India

Address

34, Srinagar Colony, Rain Center, Hyderabad, TG, IND, 500073

Website

https://www.rain-industries.com

Rain Industries Ltd engages in the production of cement and other related products. The group operates through three segments namely Carbon Products, Advanced Materials, and Cement. The product portfolio of the group consists of Calcined Petroleum Coke, Green Petroleum Coke, Coal Tar Pitch, Co-generated Energy and other derivatives of coal tar distillation. In addition, it also focuses on the downstream operations of coal tar distillation and modifiers and is also involved in the manufacture and sale of cement. Geographically, the business of the firm is spread across the region of Europe, the United States, North America, Asia, and others.

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