Cospower Engineering (BOM:543172) Interest Coverage : 0 (At Loss) (As of Sep. 2023)

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What is Cospower Engineering 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. Cospower Engineering's Operating Income for the six months ended in Sep. 2023 was ₹-6.8 Mil. Cospower Engineering's Interest Expense for the six months ended in Sep. 2023 was ₹-9.4 Mil. did not have earnings to cover the interest expense. 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. Cospower Engineering Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

BOM:543172' s Interest Coverage Range Over the Past 10 Years
Min: 0.3 Med: 2.85 Max: 4.87
Current: 0.3

BOM:543172's Interest Coverage is ranked worse than
98.43% of 1589 companies
in the Hardware industry
Industry Median: 12.78 vs BOM:543172: 0.30

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

Cospower Engineering Interest Coverage Historical Data

The historical data trend for Cospower Engineering'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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Cospower Engineering Interest Coverage Chart

Cospower Engineering Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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3.49

4.87

3.72

2.85

1.32

Cospower Engineering Semi-Annual Data
	Mar17	Mar18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial							1.71	3.92	-	4.80	-

Competitive Comparison of Cospower Engineering's Interest Coverage

For the Electronic Components subindustry, Cospower Engineering'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.

Cospower Engineering's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Cospower Engineering's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cospower Engineering's Interest Coverage falls into.

Cospower Engineering 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.

Cospower Engineering'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, Cospower Engineering's Interest Expense was ₹-5.7 Mil. Its Operating Income was ₹7.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹122.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	7.518	/	-5.689
	=	1.32

Cospower Engineering's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Cospower Engineering's Interest Expense was ₹-9.4 Mil. Its Operating Income was ₹-6.8 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹132.3 Mil.

Cospower Engineering did not have earnings to cover the interest expense.

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

Cospower Engineering (BOM:543172) 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 .

Cospower Engineering Interest Coverage Related Terms

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

Cospower Engineering (BOM:543172) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Cospower Engineering Ltd (BOM:543172) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Chincholi Bunder Road, 403, Chandra-Raj Building, Behind Vivanta Hospital, Malad (West), Mumbai, MH, IND, 400064

Website

https://www.cel.net.in

Cospower Engineering Ltd is engaged in the business of manufacturing of electrical panels, harmonic filters and substations, and equipment mounting structures. It provides turnkey services which involve supply, installation, commissioning, testing, and comprehensive maintenance of electric products. The company has extended its product range to other power-related products that are needed to complete the electrical system. It offers under one roof a complete package of electrical systems and solutions. Its business comprises of manufacturing and supplying of re-active power compensation systems, harmonic filters, and other engineering goods.

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