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Inspirisys Solution (BOM:532774) Interest Coverage : 1.82 (As of Dec. 2024)


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What is Inspirisys Solution 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. Inspirisys Solution's Operating Income for the three months ended in Dec. 2024 was ₹38 Mil. Inspirisys Solution's Interest Expense for the three months ended in Dec. 2024 was ₹-21 Mil. Inspirisys Solution's interest coverage for the quarter that ended in Dec. 2024 was 1.82. The higher the ratio, the stronger the company's financial strength is.

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

BOM:532774' s Interest Coverage Range Over the Past 10 Years
Min: 0.62   Med: 1.35   Max: 4.02
Current: 3.55


BOM:532774's Interest Coverage is ranked worse than
82% of 1656 companies
in the Software industry
Industry Median: 28.075 vs BOM:532774: 3.55

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


Inspirisys Solution Interest Coverage Historical Data

The historical data trend for Inspirisys Solution'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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Inspirisys Solution Interest Coverage Chart

Inspirisys Solution Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.07 0.62 - 4.02 3.93

Inspirisys Solution 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 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 2.59 - 2.55 2.45 1.82

Competitive Comparison of Inspirisys Solution's Interest Coverage

For the Information Technology Services subindustry, Inspirisys Solution'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.


Inspirisys Solution's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Inspirisys Solution's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Inspirisys Solution's Interest Coverage falls into.


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Inspirisys Solution 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.

Inspirisys Solution'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, Inspirisys Solution's Interest Expense was ₹-76 Mil. Its Operating Income was ₹298 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹60 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*298.3/-76
=3.93

Inspirisys Solution's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Inspirisys Solution's Interest Expense was ₹-21 Mil. Its Operating Income was ₹38 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*38.1/-20.9
=1.82

* 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.


Inspirisys Solution  (BOM:532774) 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 .


Inspirisys Solution Interest Coverage Related Terms

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


Inspirisys Solution Business Description

Traded in Other Exchanges
Address
Taylors Road, New Door Nos. 57, 59, 61 and 63, First Floor, Dowlath Towers, Kilpauk, Chennai, TN, IND, 600010
Inspirisys Solution Ltd operates as an information technology services and consulting company. Its principal lines of business are IT services which include, providing system integration (SI) solutions comprising network design, hardware, and software, Services that comprise IT Infrastructure management solutions, software development, and support, and warranty management solutions (WMS) for imported and indigenous equipment, development, implementation and maintenance of software applications. Its segments are namely Service, Systems Integrations, and Warranty Management Services. The company generates the majority of its revenue from the Services segment. which includes Infra, Security, Cloud, and Software. Geographically the company generates the majority of its revenue from India.

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