Happiest Minds Technologies (BOM:543227) Interest Coverage : 2.71 (As of Dec. 2024)

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What is Happiest Minds 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. Happiest Minds Technologies's Operating Income for the three months ended in Dec. 2024 was ₹729 Mil. Happiest Minds Technologies's Interest Expense for the three months ended in Dec. 2024 was ₹-269 Mil. Happiest Minds Technologies's interest coverage for the quarter that ended in Dec. 2024 was 2.71. The higher the ratio, the stronger the company's financial strength is.

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

BOM:543227' s Interest Coverage Range Over the Past 10 Years
Min: 3.21 Med: 12.89 Max: 28.74
Current: 3.21

BOM:543227's Interest Coverage is ranked worse than
83.14% of 1655 companies
in the Software industry
Industry Median: 27.9 vs BOM:543227: 3.21

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

Happiest Minds Technologies Interest Coverage Historical Data

The historical data trend for Happiest Minds 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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Happiest Minds Technologies Interest Coverage Chart

Happiest Minds Technologies Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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11.27

28.74

27.31

14.50

6.57

Happiest Minds Technologies 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															6.17	6.61	3.17	2.45	2.71

Competitive Comparison of Happiest Minds Technologies's Interest Coverage

For the Information Technology Services subindustry, Happiest Minds 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.

Happiest Minds Technologies's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Happiest Minds Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Happiest Minds Technologies's Interest Coverage falls into.

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Happiest Minds 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.

Happiest Minds Technologies'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, Happiest Minds Technologies's Interest Expense was ₹-423 Mil. Its Operating Income was ₹2,776 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,502 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	2775.7	/	-422.7
	=	6.57

Happiest Minds Technologies's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Happiest Minds Technologies's Interest Expense was ₹-269 Mil. Its Operating Income was ₹729 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	*	729.1	/	-269.3
	=	2.71

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

Happiest Minds Technologies (BOM:543227) 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 .

Happiest Minds Technologies Interest Coverage Related Terms

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Happiest Minds Technologies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Happiest Minds Technologies Ltd (BOM:543227) » Definitions » Interest Coverage

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HAPPSTMNDS:India

Address

No 53/1-4, Hosur Main Road, Madivala (Next To Madivala Police Station), Bengaluru, KA, IND, 560068

Website

https://www.happiestminds.com

Happiest Minds Technologies Ltd is an information technology (IT) company intended to deliver seamless customer experiences, business efficiency, and actionable insights to users. The company leverages a spectrum of disruptive technologies like artificial intelligence, blockchain, cloud, digital process automation, internet of things, robotics/drones, security, virtual/augmented reality, and more, enabling users in industry sectors like automotive, banking, financial services and insurance (BFSI), consumer packaged goods, e-commerce, edutech, engineering research and development (R&D), hi-tech, manufacturing, retail, and travel/transportation/hospitality to undergo digital transformation. Geographically, the company generates its key revenue from the United States of America.

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