AMIC Forging (BOM:544037) Interest Coverage : 161.52 (As of Mar. 2025)

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What is AMIC Forging 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. AMIC Forging's Operating Income for the six months ended in Mar. 2025 was ₹136 Mil. AMIC Forging's Interest Expense for the six months ended in Mar. 2025 was ₹-1 Mil. AMIC Forging's interest coverage for the quarter that ended in Mar. 2025 was 161.52. 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. AMIC Forging Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

BOM:544037' s Interest Coverage Range Over the Past 10 Years
Min: 2.74 Med: 16.85 Max: 61.17
Current: 61.17

BOM:544037's Interest Coverage is ranked better than
73.24% of 2283 companies
in the Industrial Products industry
Industry Median: 15.65 vs BOM:544037: 61.17

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

AMIC Forging Interest Coverage Historical Data

The historical data trend for AMIC Forging'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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AMIC Forging Interest Coverage Chart

AMIC Forging Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Mar25

Interest Coverage

4.38

2.74

16.85

30.08

61.17

AMIC Forging Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24	Sep24	Mar25
Interest Coverage	Get a 7-Day Free Trial			N/A	35.05	29.81	35.18	161.52

Competitive Comparison of AMIC Forging's Interest Coverage

For the Metal Fabrication subindustry, AMIC Forging'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.

AMIC Forging's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, AMIC Forging's Interest Coverage distribution charts can be found below:

* The bar in red indicates where AMIC Forging's Interest Coverage falls into.

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AMIC Forging 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.

AMIC Forging'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, AMIC Forging's Interest Expense was ₹-4 Mil. Its Operating Income was ₹251 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2025 )	/	Interest Expense (A: Mar. 2025 )
	=	-1	*	251.243	/	-4.107
	=	61.17

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

Here, for the six months ended in Mar. 2025, AMIC Forging's Interest Expense was ₹-1 Mil. Its Operating Income was ₹136 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	136.484	/	-0.845
	=	161.52

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

AMIC Forging (BOM:544037) 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 .

AMIC Forging Interest Coverage Related Terms

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

AMIC Forging Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » AMIC Forging Ltd (BOM:544037) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

3A, Garstin Place, 2nd Floor, Kolkata, WB, IND, 700001

Website

https://www.amicforgings.com

AMIC Forging Ltd is engaged in the manufacturing of forged components. It manufactures precision machined components catering to various industries such as heavy Engineering, Steel Industry, Oil and gas, Petrochemicals, Chemicals, Refineries, Thermal Power, Nuclear Power, Hydro Power, Cement Industry, Sugar, and other related industries. It manufactures different forging components such as Gear Couplings, Roller Shaft, Brake Drum, Hook and other products as per international standards like AISI, BS, IS, DIN, etc.

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