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Padam Cotton Yarns (BOM:531395) Interest Coverage : 281.36 (As of Mar. 2025)


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What is Padam Cotton Yarns 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. Padam Cotton Yarns's Operating Income for the three months ended in Mar. 2025 was ₹22.8 Mil. Padam Cotton Yarns's Interest Expense for the three months ended in Mar. 2025 was ₹-0.1 Mil. Padam Cotton Yarns's interest coverage for the quarter that ended in Mar. 2025 was 281.36. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Padam Cotton Yarns's Interest Coverage or its related term are showing as below:

BOM:531395' s Interest Coverage Range Over the Past 10 Years
Min: 1.67   Med: 130.38   Max: No Debt
Current: 250.2


BOM:531395's Interest Coverage is ranked better than
83.98% of 793 companies
in the Business Services industry
Industry Median: 13.32 vs BOM:531395: 250.20

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


Padam Cotton Yarns Interest Coverage Historical Data

The historical data trend for Padam Cotton Yarns'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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Padam Cotton Yarns Interest Coverage Chart

Padam Cotton Yarns 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 - - - - 258.26

Padam Cotton Yarns 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 - No Debt No Debt No Debt 281.36

Competitive Comparison of Padam Cotton Yarns's Interest Coverage

For the Consulting Services subindustry, Padam Cotton Yarns'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.


Padam Cotton Yarns's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Padam Cotton Yarns's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Padam Cotton Yarns's Interest Coverage falls into.


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Padam Cotton Yarns 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.

Padam Cotton Yarns'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, Padam Cotton Yarns's Interest Expense was ₹-0.1 Mil. Its Operating Income was ₹20.9 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹3.8 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*20.919/-0.081
=258.26

Padam Cotton Yarns's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Padam Cotton Yarns's Interest Expense was ₹-0.1 Mil. Its Operating Income was ₹22.8 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹3.8 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*22.79/-0.081
=281.36

* 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.


Padam Cotton Yarns  (BOM:531395) 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 .


Padam Cotton Yarns Interest Coverage Related Terms

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


Padam Cotton Yarns Business Description

Traded in Other Exchanges
N/A
Address
196, 1st Floor, G.T. Road, Opposite Red Cross Market, Karnal, HR, IND, 132001
Padam Cotton Yarns Ltd is engaged business of lending and investment in shares and securities and also derivatives of cotton futures at MCX. The company's revenues are generated from the consultation Income.

Padam Cotton Yarns Headlines

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