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United Cotfab (BOM:544195) Interest Coverage : 1.44 (As of Mar. 2025)


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What is United Cotfab 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. United Cotfab's Operating Income for the six months ended in Mar. 2025 was ₹24 Mil. United Cotfab's Interest Expense for the six months ended in Mar. 2025 was ₹-17 Mil. United Cotfab's interest coverage for the quarter that ended in Mar. 2025 was 1.44. The higher the ratio, the stronger the company's financial strength is.

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

BOM:544195' s Interest Coverage Range Over the Past 10 Years
Min: 1.93   Med: 4.5   Max: 60
Current: 1.93


BOM:544195's Interest Coverage is ranked worse than
74.59% of 724 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.015 vs BOM:544195: 1.93

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


United Cotfab Interest Coverage Historical Data

The historical data trend for United Cotfab'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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United Cotfab Interest Coverage Chart

United Cotfab Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
- - 60.00 4.50 1.93

United Cotfab Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25
Interest Coverage Get a 7-Day Free Trial N/A 3.45 5.41 2.37 1.44

Competitive Comparison of United Cotfab's Interest Coverage

For the Textile Manufacturing subindustry, United Cotfab'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.


United Cotfab's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, United Cotfab's Interest Coverage distribution charts can be found below:

* The bar in red indicates where United Cotfab's Interest Coverage falls into.


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United Cotfab 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.

United Cotfab'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, United Cotfab's Interest Expense was ₹-36 Mil. Its Operating Income was ₹69 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹283 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*68.776/-35.56
=1.93

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

Here, for the six months ended in Mar. 2025, United Cotfab's Interest Expense was ₹-17 Mil. Its Operating Income was ₹24 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹283 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*24.176/-16.78
=1.44

* 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.


United Cotfab  (BOM:544195) 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 .


United Cotfab Interest Coverage Related Terms

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


United Cotfab Business Description

Traded in Other Exchanges
N/A
Address
Pirana Octroi Naka, Survey No.238, 239, Shahwadi Near, Narol, Ahmedabad, GJ, IND, 382405
United Cotfab Ltd is engaged in the manufacturing of high-quality open-end yarn catering to the textile industry. Its manufacturing process adheres to stringent quality standards and is backed by technology and machinery. The company follows a systematic approach that includes raw material selection, blending (if required), spinning, winding, and quality control.

United Cotfab Headlines

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