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Inertia Steel (BOM:512025) Interest Coverage : 1.79 (As of Sep. 2024)


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What is Inertia Steel 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. Inertia Steel's Operating Income for the three months ended in Sep. 2024 was ₹4.7 Mil. Inertia Steel's Interest Expense for the three months ended in Sep. 2024 was ₹-2.6 Mil. Inertia Steel's interest coverage for the quarter that ended in Sep. 2024 was 1.79. The higher the ratio, the stronger the company's financial strength is.

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

BOM:512025' s Interest Coverage Range Over the Past 10 Years
Min: 1.67   Med: 12   Max: No Debt
Current: 1.67


BOM:512025's Interest Coverage is not ranked
in the Steel industry.
Industry Median: 5.77 vs BOM:512025: 1.67

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


Inertia Steel Interest Coverage Historical Data

The historical data trend for Inertia Steel'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.

Inertia Steel Interest Coverage Chart

Inertia Steel Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.00 12.00 - - -

Inertia Steel Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 No Debt No Debt - No Debt 1.79

Competitive Comparison of Inertia Steel's Interest Coverage

For the Steel subindustry, Inertia Steel'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.


Inertia Steel's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Inertia Steel's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Inertia Steel's Interest Coverage falls into.



Inertia Steel 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.

Inertia Steel's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Inertia Steel's Interest Expense was ₹-0.0 Mil. Its Operating Income was ₹-0.2 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0.0 Mil.

Inertia Steel did not have earnings to cover the interest expense.

Inertia Steel's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Inertia Steel's Interest Expense was ₹-2.6 Mil. Its Operating Income was ₹4.7 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹54.0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*4.718/-2.63
=1.79

* 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.


Inertia Steel  (BOM:512025) 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 .


Inertia Steel Interest Coverage Related Terms

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


Inertia Steel Business Description

Traded in Other Exchanges
N/A
Address
422, Tulsiani Chamber, Nariman Point, Mumbai, MH, IND, 400 021
Inertia Steel Ltd is engaged in the business as merchants, commission agents, brokers, buyers, sellers, importer, exporter, dealers, and business agents, trading in iron and steel and others. The firm derives revenue from the sale of Steel and Fabricated items.

Inertia Steel Headlines

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