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Shahjibazar Power Co (DHA:SPCL) Interest Coverage : 3.36 (As of Mar. 2024)


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What is Shahjibazar Power Co 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. Shahjibazar Power Co's Operating Income for the three months ended in Mar. 2024 was BDT665 Mil. Shahjibazar Power Co's Interest Expense for the three months ended in Mar. 2024 was BDT-198 Mil. Shahjibazar Power Co's interest coverage for the quarter that ended in Mar. 2024 was 3.36. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Shahjibazar Power Co's Interest Coverage or its related term are showing as below:

DHA:SPCL' s Interest Coverage Range Over the Past 10 Years
Min: 2.4   Med: 6.98   Max: 19
Current: 9.24


DHA:SPCL's Interest Coverage is ranked better than
80.55% of 329 companies
in the Utilities - Independent Power Producers industry
Industry Median: 3.16 vs DHA:SPCL: 9.24

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


Shahjibazar Power Co Interest Coverage Historical Data

The historical data trend for Shahjibazar Power Co'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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Shahjibazar Power Co Interest Coverage Chart

Shahjibazar Power Co Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
Get a 7-Day Free Trial 2.98 19.00 18.22 9.99 13.48

Shahjibazar Power Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.92 - 6.94 4.35 3.36

Competitive Comparison of Shahjibazar Power Co's Interest Coverage

For the Utilities - Independent Power Producers subindustry, Shahjibazar Power Co'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.


Shahjibazar Power Co's Interest Coverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Shahjibazar Power Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shahjibazar Power Co's Interest Coverage falls into.



Shahjibazar Power Co 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.

Shahjibazar Power Co's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Shahjibazar Power Co's Interest Expense was BDT-73 Mil. Its Operating Income was BDT987 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT411 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2023 )/Interest Expense (A: Jun. 2023 )
=-1*987.383/-73.244
=13.48

Shahjibazar Power Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Shahjibazar Power Co's Interest Expense was BDT-198 Mil. Its Operating Income was BDT665 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT159 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*665.069/-198.072
=3.36

* 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.


Shahjibazar Power Co  (DHA:SPCL) 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 .


Shahjibazar Power Co Interest Coverage Related Terms

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


Shahjibazar Power Co (DHA:SPCL) Business Description

Traded in Other Exchanges
N/A
Address
822/2, Rokeya Sarani, Mirpur, Dhaka, BGD, 1216
Shahjibazar Power Co Ltd generates and supplies electricity in Bangladesh. It generates revenue from High Octane Blending Component (HOBC); Motor Spirit (MS); High Speed Diesel (HSD) and Superior Kerosene Oil (SKO).

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