Kahan Packaging (BOM:543979) Interest Coverage : 3.52 (As of Mar. 2023)

View and export this data going back to 2023. Start your Free Trial

What is Kahan Packaging 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. Kahan Packaging's Operating Income for the six months ended in Mar. 2023 was ₹18.3 Mil. Kahan Packaging's Interest Expense for the six months ended in Mar. 2023 was ₹-5.2 Mil. Kahan Packaging's interest coverage for the quarter that ended in Mar. 2023 was 3.52. The higher the ratio, the stronger the company's financial strength is.

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

BOM:543979' s Interest Coverage Range Over the Past 10 Years
Min: 1.13 Med: 1.6 Max: 3.52
Current: 3.52

BOM:543979's Interest Coverage is ranked worse than
66.56% of 308 companies
in the Packaging & Containers industry
Industry Median: 6.84 vs BOM:543979: 3.52

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

Kahan Packaging Interest Coverage Historical Data

The historical data trend for Kahan Packaging'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.

* Premium members only.

Kahan Packaging Interest Coverage Chart

Kahan Packaging Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Interest Coverage

1.41

1.13

1.79

3.52

Kahan Packaging Semi-Annual Data
	Mar20	Mar21	Mar22	Mar23
Interest Coverage	1.41	1.13	1.79	3.52

Competitive Comparison of Kahan Packaging's Interest Coverage

For the Packaging & Containers subindustry, Kahan Packaging'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.

Kahan Packaging's Interest Coverage Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Kahan Packaging's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kahan Packaging's Interest Coverage falls into.

Kahan Packaging 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.

Kahan Packaging'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, Kahan Packaging's Interest Expense was ₹-5.2 Mil. Its Operating Income was ₹18.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹42.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	18.339	/	-5.206
	=	3.52

Kahan Packaging's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the six months ended in Mar. 2023, Kahan Packaging's Interest Expense was ₹-5.2 Mil. Its Operating Income was ₹18.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹42.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	18.339	/	-5.206
	=	3.52

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

Kahan Packaging (BOM:543979) 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 .

Kahan Packaging Interest Coverage Related Terms

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

Kahan Packaging (BOM:543979) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Kahan Packaging Ltd (BOM:543979) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

212, Jhalawar Service Premises, E S Patanwalla Compound, Opp. Shreyas Talkies, L.B.S.Marg, Ghatkopar - West, Mumbai, MH, IND, 400086

Website

https://www.kpackltd.com

Kahan Packaging Ltd is a company in the business of manufacturing and supply of Polypropylene / High Density Polyethylene, HDPE Woven Fabric- Laminated, HDPE/PP woven sacks, Woven Fabric- UnLaminated, PP Woven Bag, PP Woven Bag with Liner, Printed Laminates for Flexible Packaging, woven polymer based products of different weight, sizes and colors as per customer's specifications. It offers customized bulk packaging solutions to business-to business (B2B) manufacturers catering to different industries such as Agro Pesticides Industry, Cement Industry, Chemical Industry, Fertilizer Industry, Food Products Industry.

Kahan Packaging (BOM:543979) Headlines

No Headlines