A.K. Capital Services (BOM:530499) Interest Coverage : 1.39 (As of Dec. 2024)

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What is A.K. Capital Services 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. A.K. Capital Services's Operating Income for the three months ended in Dec. 2024 was ₹788 Mil. A.K. Capital Services's Interest Expense for the three months ended in Dec. 2024 was ₹-568 Mil. A.K. Capital Services's interest coverage for the quarter that ended in Dec. 2024 was 1.39. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. A.K. Capital Services Ltd interest coverage is 1.53, which is low.

The historical rank and industry rank for A.K. Capital Services's Interest Coverage or its related term are showing as below:

BOM:530499' s Interest Coverage Range Over the Past 10 Years
Min: 1.51 Med: 1.73 Max: 2.15
Current: 1.53

BOM:530499's Interest Coverage is ranked worse than
86.75% of 453 companies
in the Capital Markets industry
Industry Median: 22.91 vs BOM:530499: 1.53

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

A.K. Capital Services Interest Coverage Historical Data

The historical data trend for A.K. Capital Services'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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A.K. Capital Services Interest Coverage Chart

A.K. Capital Services Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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1.51

2.14

2.15

1.88

1.61

A.K. Capital Services Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Interest Coverage	Get a 7-Day Free Trial															1.50	1.72	1.56	1.48	1.39

Competitive Comparison of A.K. Capital Services's Interest Coverage

For the Capital Markets subindustry, A.K. Capital Services'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.

A.K. Capital Services's Interest Coverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, A.K. Capital Services's Interest Coverage distribution charts can be found below:

* The bar in red indicates where A.K. Capital Services's Interest Coverage falls into.

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A.K. Capital Services 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.

A.K. Capital Services'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, A.K. Capital Services's Interest Expense was ₹-1,958 Mil. Its Operating Income was ₹3,160 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹26,741 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	3159.798	/	-1958.024
	=	1.61

A.K. Capital Services's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, A.K. Capital Services's Interest Expense was ₹-568 Mil. Its Operating Income was ₹788 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	788.162	/	-568.207
	=	1.39

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

A.K. Capital Services (BOM:530499) 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 .

A.K. Capital Services Interest Coverage Related Terms

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

A.K. Capital Services Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » A.K. Capital Services Ltd (BOM:530499) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Off CST Road, 603, 6th Floor, Windsor, Kalina, Santacruz (East), Mumbai, IND, 400 098

Website

https://www.akgroup.co.in

A.K. Capital Services Ltd is engaged in the provision of merchant banking services within India. The company operates in a single operating segment i.e. Merchant Banking, Advisory Services, Financing and Investment Activities, Stock Broking and Portfolio Management Services, within India. Its investment banking products and services include private placement of fixed income securities such as commercial paper, public issue of bond and non-convertible debentures, loan syndication, underwriting of debt issues, qualified institutional placements and others. In addition, it is involved in providing various services related to Broking & Distribution, Advisory, Financing, and Structured Products such as corporate debt restructuring, fundraising, offshore debt financing, and others.

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