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Meghmani Organics (BOM:543331) Interest Coverage : 0 (At Loss) (As of Mar. 2025)


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What is Meghmani Organics 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. Meghmani Organics's Operating Income for the three months ended in Mar. 2025 was ₹428 Mil. Meghmani Organics's Interest Expense for the three months ended in Mar. 2025 was ₹35 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 Meghmani Organics's Interest Coverage or its related term are showing as below:

BOM:543331' s Interest Coverage Range Over the Past 10 Years
Min: 0.86   Med: 13.39   Max: 48.69
Current: 0.86


BOM:543331's Interest Coverage is ranked worse than
93.91% of 197 companies
in the Agriculture industry
Industry Median: 7.06 vs BOM:543331: 0.86

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


Meghmani Organics Interest Coverage Historical Data

The historical data trend for Meghmani Organics'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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Meghmani Organics Interest Coverage Chart

Meghmani Organics Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial 35.85 48.69 17.47 - 0.90

Meghmani Organics Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 - - 0.19 0.87 -

Competitive Comparison of Meghmani Organics's Interest Coverage

For the Agricultural Inputs subindustry, Meghmani Organics'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.


Meghmani Organics's Interest Coverage Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Meghmani Organics's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Meghmani Organics's Interest Coverage falls into.


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Meghmani Organics 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.

Meghmani Organics's Interest Coverage for the fiscal year that ended in Mar. 2025 is calculated as

Here, for the fiscal year that ended in Mar. 2025, Meghmani Organics's Interest Expense was ₹-462 Mil. Its Operating Income was ₹414 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹2,833 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*414.138/-462.074
=0.90

Meghmani Organics's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Meghmani Organics's Interest Expense was ₹35 Mil. Its Operating Income was ₹428 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹2,833 Mil.

* 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.


Meghmani Organics  (BOM:543331) 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 .


Meghmani Organics Interest Coverage Related Terms

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


Meghmani Organics Business Description

Traded in Other Exchanges
Address
Near Raj Bunglows, Near Safal Profitaire, Prahlad Nagar, 1st to 3rd Floor, Meghmani House, Satellite, Ahmedabad, GJ, IND, 380015
Meghmani Organics Ltd is engaged in the manufacturing of pigments and agrochemicals. The company operates through business divisions namely Pigments and Agrochemicals. The Pigments division is engaged in the manufacture and distribution of phthalocyanine green 7, copper phthalocyanine blue, alpha blue, and beta blue. The Agrochemicals Division, the key revenue-generating segment, is engaged in the manufacturing and distribution of technical, intermediates, and formulations of Crop Protection Chemicals. It has a presence in India as well as Outside India.

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