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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. Rainbow Denim's
Operating Income
for the
three
months ended in Mar. 2026 was ₹55 Mil. Rainbow Denim's Interest Expense for the
three
months ended in Mar. 2026 was ₹-21 Mil.
Rainbow Denim's interest coverage for the quarter that ended in Mar. 2026 was 2.66.
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. Rainbow Denim Ltd interest coverage is 3.17, which is low.
The historical rank and industry rank for Rainbow Denim's Interest Coverage or its related term are showing as below:
BOM:532441'
s Interest Coverage Range Over the Past 10 Years
Min: 3.13 Med: 3.17 Max: 10.09
Current: 3.17
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 .
Rainbow Denim Interest Coverage Related Terms
Rainbow Denim Interest Coverage Historical Data
* Premium members only.
The historical data trend for Rainbow Denim'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.
For the Textile Manufacturing subindustry, Rainbow Denim'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.
Rainbow Denim Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Rainbow Denim's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Rainbow Denim's Interest Coverage falls into.
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:
* 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.
Rainbow Denim (BOM:532441) has a Interest Coverage of 2.66 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rainbow Denim and its competitors. This is 16% below median its historical median of 3.17. Over the past decade, Rainbow Denim's Interest Coverage has ranged from 3.13 to 10.09.
Is Rainbow Denim's Interest Coverage too high?
Rainbow Denim's current Interest Coverage of 2.66 is 16% below median its 10-year median of 3.17. Over the past 10 years, this metric has ranged from a low of 3.13 to a high of 10.09. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.30. Rainbow Denim's value of 2.66 is 49.8% below this industry median. Overall, Rainbow Denim has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Rainbow Denim's Interest Coverage compare to AIN?
Rainbow Denim's Interest Coverage of 2.66 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Interest Coverage is 5.30. Rainbow Denim's value of 2.66 is 49.8% below this benchmark. Historically, Rainbow Denim's own Interest Coverage has ranged from 3.13 to 10.09 over the past decade. While the company's 10-year median is 3.17 vs. the industry median of 5.30, Rainbow Denim has consistently been below the industry average. 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 a Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.30, based on 735 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. Rainbow Denim's current Interest Coverage of 2.66 is 49.8% 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 Rainbow Denim and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rainbow Denim's current Interest Coverage is 2.66, which is 16% below median its own 10-year median of 3.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Denim stock overvalued right now?
Rainbow Denim (BOM:532441) has a current Interest Coverage of 2.66. The current Interest Coverage is 2.66, which is 16% below median its 10-year median of 3.17 and 49.8% below the Manufacturing - Apparel & Accessories industry median of 5.30. Rainbow Denim's overall GF Score™ is 4/100 with 6 warning signs to review. 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 Rainbow Denim (BOM:532441), the current Interest Coverage is 2.66 as of Mar. 2026. 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.
Rainbow Denim Ltd is an Indian firm operating in the textile industry. It is principally engaged in the single segment of manufacturing and distribution of denim fabric. Its product range consists of crosshatch denim, slubby denim, structured (dobby) denim, polyester filament weft denim, multi-count denim fabrics, doubled yarn warp denim, and silky denim and others.
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