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Sukhjit Starch & Chemicals (BOM:524542) Interest Coverage : 1.23 (As of Mar. 2025)


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What is Sukhjit Starch & Chemicals 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. Sukhjit Starch & Chemicals's Operating Income for the three months ended in Mar. 2025 was ₹73 Mil. Sukhjit Starch & Chemicals's Interest Expense for the three months ended in Mar. 2025 was ₹-59 Mil. Sukhjit Starch & Chemicals's interest coverage for the quarter that ended in Mar. 2025 was 1.23. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sukhjit Starch & Chemicals's Interest Coverage or its related term are showing as below:

BOM:524542' s Interest Coverage Range Over the Past 10 Years
Min: 1.93   Med: 2.95   Max: 5.25
Current: 2.52


BOM:524542's Interest Coverage is ranked worse than
80.2% of 1187 companies
in the Chemicals industry
Industry Median: 9.7 vs BOM:524542: 2.52

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


Sukhjit Starch & Chemicals Interest Coverage Historical Data

The historical data trend for Sukhjit Starch & Chemicals'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.

Sukhjit Starch & Chemicals Interest Coverage Chart

Sukhjit Starch & Chemicals Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.93 5.25 4.00 2.82 2.52

Sukhjit Starch & Chemicals Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 2.96 3.35 2.61 2.61 1.23

Competitive Comparison of Sukhjit Starch & Chemicals's Interest Coverage

For the Specialty Chemicals subindustry, Sukhjit Starch & Chemicals'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.


Sukhjit Starch & Chemicals's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sukhjit Starch & Chemicals's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sukhjit Starch & Chemicals's Interest Coverage falls into.


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Sukhjit Starch & Chemicals 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.

Sukhjit Starch & Chemicals's Interest Coverage for the fiscal year that ended in Mar. 2025 is calculated as

Here, for the fiscal year that ended in Mar. 2025, Sukhjit Starch & Chemicals's Interest Expense was ₹-301 Mil. Its Operating Income was ₹758 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹968 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*757.9/-300.8
=2.52

Sukhjit Starch & Chemicals's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Sukhjit Starch & Chemicals's Interest Expense was ₹-59 Mil. Its Operating Income was ₹73 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹968 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*72.7/-59.3
=1.23

* 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.


Sukhjit Starch & Chemicals  (BOM:524542) 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 .


Sukhjit Starch & Chemicals Interest Coverage Related Terms

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Sukhjit Starch & Chemicals Business Description

Traded in Other Exchanges
Address
Sarai Road, Kapurthala District, Phagwara, PB, IND, 144401
Sukhjit Starch & Chemicals Ltd is an India-based manufacturer of starch and its derivatives. The company's operation is divided into four segments namely Starch & its derivatives, Readymade garments, Leasing & hire purchase financing, and Manufacturing of heavy machinery. It derives key revenue from Starch and its derivatives business division. The company products include Maize Starch, Monohydrate Dextrose, Sorbitol 70%, Anhydrous Dextrose, Liquid Glucose, High Maltose Syrup, Malto Dextrin Powder, Modified Starch, Maize Gluten, Maize Germ, Maize Oil, and Maize Bran.

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