Advanced Enzyme Technologies (BOM:540025) Interest Coverage : 66.80 (As of Dec. 2023)

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What is Advanced Enzyme Technologies 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. Advanced Enzyme Technologies's Operating Income for the three months ended in Dec. 2023 was ₹452 Mil. Advanced Enzyme Technologies's Interest Expense for the three months ended in Dec. 2023 was ₹-7 Mil. Advanced Enzyme Technologies's interest coverage for the quarter that ended in Dec. 2023 was 66.80. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Advanced Enzyme Technologies Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Advanced Enzyme Technologies's Interest Coverage or its related term are showing as below:

BOM:540025' s Interest Coverage Range Over the Past 10 Years
Min: 7.9 Med: 41.02 Max: 130.21
Current: 65.32

BOM:540025's Interest Coverage is ranked better than
80.68% of 1180 companies
in the Chemicals industry
Industry Median: 9.71 vs BOM:540025: 65.32

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

Advanced Enzyme Technologies Interest Coverage Historical Data

The historical data trend for Advanced Enzyme Technologies'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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Advanced Enzyme Technologies Interest Coverage Chart

Advanced Enzyme Technologies Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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42.69

69.40

130.21

93.86

57.12

Advanced Enzyme Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															52.26	85.92	54.52	56.55	66.80

Competitive Comparison of Advanced Enzyme Technologies's Interest Coverage

For the Specialty Chemicals subindustry, Advanced Enzyme Technologies'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.

Advanced Enzyme Technologies's Interest Coverage Distribution in the Chemicals Industry

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

* The bar in red indicates where Advanced Enzyme Technologies's Interest Coverage falls into.

Advanced Enzyme Technologies 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.

Advanced Enzyme Technologies's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Advanced Enzyme Technologies's Interest Expense was ₹-24 Mil. Its Operating Income was ₹1,383 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹224 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	1382.96	/	-24.21
	=	57.12

Advanced Enzyme Technologies's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Advanced Enzyme Technologies's Interest Expense was ₹-7 Mil. Its Operating Income was ₹452 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	451.57	/	-6.76
	=	66.80

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

Advanced Enzyme Technologies (BOM:540025) 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 .

Advanced Enzyme Technologies Interest Coverage Related Terms

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

Advanced Enzyme Technologies (BOM:540025) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Advanced Enzyme Technologies Ltd (BOM:540025) » Definitions » Interest Coverage

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ADVENZYMES:India

Address

Near LIC Service Road, Sun Magnetica, A Wing, 5th Floor, Louiswadi, Thane (West), Thane, MH, IND, 400604

Website

https://www.advancedenzymes.com

Advanced Enzyme Technologies Ltd is an Indian company engaged in research activities to manufacture and sell enzymes. The Company operates only in one business segment viz. manufacturing and sales of enzymes. The company offers enzymes for human healthcare and nutrition, animal nutrition, food processing, and non-food processing. Some of the products offered by the company are serratiopeptidase, fungal lipase, papain, hemicellulose, and digegrain, among others. Geographically, the entity operates in India, Europe, the USA, Asia, and other countries, of which a majority of the revenue is derived from India.

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