Master Components (NSE:MASTER) Interest Coverage : 35.96 (As of Mar. 2023)

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What is Master Components 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. Master Components's Operating Income for the six months ended in Mar. 2023 was ₹11.8 Mil. Master Components's Interest Expense for the six months ended in Mar. 2023 was ₹-0.3 Mil. Master Components's interest coverage for the quarter that ended in Mar. 2023 was 35.96. The higher the ratio, the stronger the company's financial strength is.

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

NSE:MASTER' s Interest Coverage Range Over the Past 10 Years
Min: 4.99 Med: 7.36 Max: 26.4
Current: 26.4

NSE:MASTER's Interest Coverage is ranked better than
75.32% of 312 companies
in the Packaging & Containers industry
Industry Median: 6.925 vs NSE:MASTER: 26.40

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

Master Components Interest Coverage Historical Data

The historical data trend for Master Components'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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Master Components Interest Coverage Chart

Master Components Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Interest Coverage

5.49

4.99

9.22

26.40

Master Components Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23
Interest Coverage	N/A	N/A	N/A	21.07	35.96

Competitive Comparison of Master Components's Interest Coverage

For the Packaging & Containers subindustry, Master Components'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.

Master Components's Interest Coverage Distribution in the Packaging & Containers Industry

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

* The bar in red indicates where Master Components's Interest Coverage falls into.

Master Components 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.

Master Components'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, Master Components's Interest Expense was ₹-0.9 Mil. Its Operating Income was ₹24.1 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹3.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	24.127	/	-0.914
	=	26.40

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

Here, for the six months ended in Mar. 2023, Master Components's Interest Expense was ₹-0.3 Mil. Its Operating Income was ₹11.8 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹3.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	11.76	/	-0.327
	=	35.96

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

Master Components (NSE:MASTER) 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 .

Master Components Interest Coverage Related Terms

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

Master Components (NSE:MASTER) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Master Components Ltd (NSE:MASTER) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot No. D-10/A and D-10/B, M.I.D.C, Ambad, Nashik, MH, IND, 422010

Website

https://www.master-group.in/mastercomponents.html

Master Components Ltd is a company engaged in manufacturing plastic engineering components and subassemblies. Their product is a industrial capital goods and it undergoes stringent quality tests to meet industry standards before they are delivered to their clients. The company provides list of services such as Thermoplastic Injection Moulding, Thermoset Injection Moulding, Thermoset transfer moulding, Compression Moulding.

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