Lakshmi Precision Screws (BOM:506079) Interest Coverage: 0 (At Loss) (As of Mar. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Lakshmi Precision Screws Interest Coverage?

Lakshmi Precision Screws BOM:506079 Interest Coverage is 0 (At Loss) as of Mar. 2017.

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. Lakshmi Precision Screws's Operating Income for the six months ended in Mar. 2017 was ₹-138 Mil. Lakshmi Precision Screws's Interest Expense for the six months ended in Mar. 2017 was ₹-368 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Lakshmi Precision Screws's Interest Coverage or its related term are showing as below:


BOM:506079's Interest Coverage is not ranked *
in the Industrial Products industry.
Industry Median: 14.8
* Ranked among companies with meaningful Interest Coverage only.

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


Lakshmi Precision Screws  (BOM:506079) 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 .


Lakshmi Precision Screws Interest Coverage Related Terms


Lakshmi Precision Screws Interest Coverage Historical Data

* Premium members only.

The historical data trend for Lakshmi Precision Screws'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.

Lakshmi Precision Screws Interest Coverage Chart

Lakshmi Precision Screws Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.15 0.38 1.27 0.30 0.00

Lakshmi Precision Screws Semi-Annual Data
Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.15 0.38 1.27 0.30 0.00

BOM:506079 vs TXHG, TBLT: Interest Coverage Comparison

For the Tools & Accessories subindustry, Lakshmi Precision Screws'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.


Lakshmi Precision Screws Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Lakshmi Precision Screws's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Lakshmi Precision Screws's Interest Coverage falls into.



Lakshmi Precision Screws 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.

Lakshmi Precision Screws's Interest Coverage for the fiscal year that ended in Mar. 2017 is calculated as

Here, for the fiscal year that ended in Mar. 2017, Lakshmi Precision Screws's Interest Expense was ₹-368 Mil. Its Operating Income was ₹-138 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹624 Mil.

Lakshmi Precision Screws did not have earnings to cover the interest expense.

Lakshmi Precision Screws's Interest Coverage for the quarter that ended in Mar. 2017 is calculated as

Here, for the six months ended in Mar. 2017, Lakshmi Precision Screws's Interest Expense was ₹-368 Mil. Its Operating Income was ₹-138 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹624 Mil.

Lakshmi Precision Screws did not have earnings to cover the interest expense.

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0 (At Loss) mean?
Lakshmi Precision Screws (BOM:506079) has a Interest Coverage of 0 (At Loss) as of Mar. 2017. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lakshmi Precision Screws and its competitors.
Is Lakshmi Precision Screws' Interest Coverage too high?
Lakshmi Precision Screws' current Interest Coverage is 0 (At Loss).
How does Lakshmi Precision Screws' Interest Coverage compare to TXHG and TBLT?
Lakshmi Precision Screws' Interest Coverage of 0 (At Loss) can be compared against companies in the Industrial Products industry. The industry median Interest Coverage is 14.80. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,323 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lakshmi Precision Screws and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lakshmi Precision Screws's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lakshmi Precision Screws stock overvalued right now?
Lakshmi Precision Screws (BOM:506079) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Lakshmi Precision Screws (BOM:506079), the current Interest Coverage is 0 (At Loss) as of Mar. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Lakshmi Precision Screws Business Description

Address Hisar Road, 46/1, Mile Stone, Rohtak, HR, IND, 124001
Lakshmi Precision Screws Ltd is engaged in the business of manufacturing high-tensile fasteners. The product portfolio includes - Bolts and Screws, Pins, Nuts, Allen Key, Anchor Bush, Hammer, Wedges, Threaded road, Ball pins, Clevis pins, and many others. The company caters to the need of many sectors like Wind energy, Automotive, Defence, Electronic and communication, Construction, Agriculture, Tool and die, Oil and gas. The company's area of operation comprises four manufacturing units spread across an area of about 1,00,000 sqm.