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Reliance Communications (BOM:532712) Interest Coverage : 0 (At Loss) (As of Mar. 2024)


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What is Reliance Communications 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. Reliance Communications's Operating Income for the three months ended in Mar. 2024 was ₹-310 Mil. Reliance Communications's Interest Expense for the three months ended in Mar. 2024 was ₹-100 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


BOM:532712's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.475
* 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.


Reliance Communications Interest Coverage Historical Data

The historical data trend for Reliance Communications'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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Reliance Communications Interest Coverage Chart

Reliance Communications Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
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Reliance Communications Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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Competitive Comparison of Reliance Communications's Interest Coverage

For the Telecom Services subindustry, Reliance Communications'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.


Reliance Communications's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Reliance Communications's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Reliance Communications's Interest Coverage falls into.



Reliance Communications 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.

Reliance Communications'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, Reliance Communications's Interest Expense was ₹-470 Mil. Its Operating Income was ₹-1,380 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹4,360 Mil.

Reliance Communications did not have earnings to cover the interest expense.

Reliance Communications's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Reliance Communications's Interest Expense was ₹-100 Mil. Its Operating Income was ₹-310 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹4,360 Mil.

Reliance Communications did not have earnings to cover the 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.

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


Reliance Communications  (BOM:532712) 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 .


Reliance Communications Interest Coverage Related Terms

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Reliance Communications (BOM:532712) Business Description

Traded in Other Exchanges
Address
H Block, 1st Floor, Thane Belapur Road, Dhirubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai, MH, IND, 400 710
Reliance Communications Ltd is a triple-play telecommunications company that provides mobile, voice, and broadband services in two segments: India Operations and global Operations. The India Operations segment accounts for the majority of overall company revenue and includes wireless, mobile, and satellite TV services to Indian retail customers as well as voice, broadband access services to enterprises. The global Operations segment offers international data and network services, enterprise services, and data services to global customers. These services are offered over the group's owned submarine cable infrastructure and Indian fiber network. Additionally, Reliance Communications owns mobile phone tower infrastructure.

Reliance Communications (BOM:532712) Headlines

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