Emgee Cablesmmunications (BOM:530333) Interest Coverage: 1.19 (As of Dec. 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 Emgee Cablesmmunications Interest Coverage?

Emgee Cablesmmunications BOM:530333 Interest Coverage is 1.19 as of Dec. 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. Emgee Cablesmmunications's Operating Income for the three months ended in Dec. 2017 was ₹35 Mil. Emgee Cablesmmunications's Interest Expense for the three months ended in Dec. 2017 was ₹-30 Mil. Emgee Cablesmmunications's interest coverage for the quarter that ended in Dec. 2017 was 1.19. The higher the ratio, the stronger the company's financial strength is.

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


BOM:530333's Interest Coverage is not ranked *
in the Industrial Products industry.
Industry Median: 14.835
* 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.


Emgee Cablesmmunications  (BOM:530333) 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 .


Emgee Cablesmmunications Interest Coverage Related Terms


Emgee Cablesmmunications Interest Coverage Historical Data

* Premium members only.

The historical data trend for Emgee Cablesmmunications'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.

Emgee Cablesmmunications Interest Coverage Chart

Emgee Cablesmmunications 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 0.98 1.30 1.29 1.27 1.28

Emgee Cablesmmunications Quarterly Data
Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17
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 1.10 1.13 1.16 1.08 1.19

BOM:530333 vs ALPP, WAYS: Interest Coverage Comparison

For the Electrical Equipment & Parts subindustry, Emgee Cablesmmunications'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.


Emgee Cablesmmunications Interest Coverage vs Industrial Products Industry

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

* The bar in red indicates where Emgee Cablesmmunications's Interest Coverage falls into.



Emgee Cablesmmunications 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.

Emgee Cablesmmunications'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, Emgee Cablesmmunications's Interest Expense was ₹-82 Mil. Its Operating Income was ₹105 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹169 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2017 )/Interest Expense (A: Mar. 2017 )
=-1*104.784/-81.887
=1.28

Emgee Cablesmmunications's Interest Coverage for the quarter that ended in Dec. 2017 is calculated as

Here, for the three months ended in Dec. 2017, Emgee Cablesmmunications's Interest Expense was ₹-30 Mil. Its Operating Income was ₹35 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2017 )/Interest Expense (Q: Dec. 2017 )
=-1*35.137/-29.531
=1.19

* 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 1.19 mean?
Emgee Cablesmmunications (BOM:530333) has a Interest Coverage of 1.19 as of Dec. 2017. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Emgee Cablesmmunications and its competitors.
Is Emgee Cablesmmunications' Interest Coverage too high?
Emgee Cablesmmunications' current Interest Coverage is 1.19. The Industrial Products industry median Interest Coverage is 14.84. Emgee Cablesmmunications' value of 1.19 is 92% below this industry median.
How does Emgee Cablesmmunications' Interest Coverage compare to ALPP and WAYS?
Emgee Cablesmmunications' Interest Coverage of 1.19 can be compared against companies in the Industrial Products industry. The industry median Interest Coverage is 14.84. Emgee Cablesmmunications' value of 1.19 is 92% below this benchmark. 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 14.84, based on 2,322 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. Emgee Cablesmmunications's current Interest Coverage of 1.19 is 92% below the industry median. 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 Emgee Cablesmmunications and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emgee Cablesmmunications's current Interest Coverage is 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emgee Cablesmmunications stock overvalued right now?
Emgee Cablesmmunications (BOM:530333) has a current Interest Coverage of 1.19. The current Interest Coverage is 1.19 and 92% below the Industrial Products industry median of 14.84. 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 Emgee Cablesmmunications (BOM:530333), the current Interest Coverage is 1.19 as of Dec. 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.

Emgee Cablesmmunications Business Description

Address Alankar Plaza, Central Spine, T-16, 3rd Floor, Vidhyadhar Nagar, Jaipur, RJ, IND, 302023
Emgee Cables & Communications Ltd is engaged in the manufacture and trade of wires and cables. The company produces copper and copper alloy, wires and conductors, Polymerization of vinyl chloride (PVC) insulated wire and cables, electrical and electronic items, does power transmission and distribution projects on turnkey basis and engineering solutions. The company gives services to energy, construction, consumer and industrial sectors, pump manufactures, aerospace, medical, automobile, telecommunication, electronic, railways, and defense sectors. It derives most of its revenues from the sale of the wires and cables business and has operations spread across India.