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Vipul Organics (BOM:530627) Interest Coverage : 2.47 (As of Mar. 2025)


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What is Vipul Organics 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. Vipul Organics's Operating Income for the three months ended in Mar. 2025 was ₹22 Mil. Vipul Organics's Interest Expense for the three months ended in Mar. 2025 was ₹-9 Mil. Vipul Organics's interest coverage for the quarter that ended in Mar. 2025 was 2.47. The higher the ratio, the stronger the company's financial strength is.

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

BOM:530627' s Interest Coverage Range Over the Past 10 Years
Min: 2.43   Med: 4.06   Max: 9.04
Current: 3.24


BOM:530627's Interest Coverage is ranked worse than
74.89% of 1187 companies
in the Chemicals industry
Industry Median: 9.7 vs BOM:530627: 3.24

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


Vipul Organics Interest Coverage Historical Data

The historical data trend for Vipul Organics'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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Vipul Organics Interest Coverage Chart

Vipul Organics 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 8.82 5.85 2.43 2.54 3.24

Vipul Organics 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 2.55 3.50 3.46 3.87 2.47

Competitive Comparison of Vipul Organics's Interest Coverage

For the Specialty Chemicals subindustry, Vipul Organics'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.


Vipul Organics's Interest Coverage Distribution in the Chemicals Industry

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

* The bar in red indicates where Vipul Organics's Interest Coverage falls into.


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Vipul Organics 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.

Vipul Organics'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, Vipul Organics's Interest Expense was ₹-27 Mil. Its Operating Income was ₹87 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹97 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*86.73/-26.805
=3.24

Vipul Organics's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Vipul Organics's Interest Expense was ₹-9 Mil. Its Operating Income was ₹22 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹97 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*21.523/-8.723
=2.47

* 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.


Vipul Organics  (BOM:530627) 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 .


Vipul Organics Interest Coverage Related Terms

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


Vipul Organics Business Description

Traded in Other Exchanges
N/A
Address
Off. Western Express Highway, Sahar Road, B 603-A, Kaledonia Building, Andheri (East), Mumbai, MH, IND, 400069
Vipul Organics Ltd is engaged in the business of Dyestuff, Organic pigments, and Organic intermediates in India and internationally. The company manufactures various products such as pigment powder, pigment dispersions, reactive dyes, direct dyes, acid dyes, naphthols, fast color bases, fast color salts, vat dyes and vat paste, basic dyes, food colors, and lake colors, intermediates for dyestuffs and pigments, and herbal extracts. In addition, it serves various industries ranging from textile, paint, printing ink, cosmetics, food industry, plastic, and much more. It derives key revenue from exporting its products outside India.

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