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United Motors Lanka (COL:UML.N0000) Interest Coverage : 0.51 (As of Mar. 2025)


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What is United Motors Lanka 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 Motors Lanka's Operating Income for the three months ended in Mar. 2025 was රු62 Mil. United Motors Lanka's Interest Expense for the three months ended in Mar. 2025 was රු-120 Mil. United Motors Lanka's interest coverage for the quarter that ended in Mar. 2025 was 0.51. The higher the ratio, the stronger the company's financial strength is.

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

COL:UML.N0000' s Interest Coverage Range Over the Past 10 Years
Min: 0.16   Med: 2.4   Max: 21.78
Current: 0.16


COL:UML.N0000's Interest Coverage is ranked worse than
99.42% of 1042 companies
in the Vehicles & Parts industry
Industry Median: 8.055 vs COL:UML.N0000: 0.16

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 Motors Lanka Interest Coverage Historical Data

The historical data trend for United Motors Lanka'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.

* Premium members only.

United Motors Lanka Interest Coverage Chart

United Motors Lanka Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.88 7.34 - - 0.19

United Motors Lanka 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 - - 0.85 1.13 0.51

Competitive Comparison of United Motors Lanka's Interest Coverage

For the Auto & Truck Dealerships subindustry, United Motors Lanka'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 Motors Lanka's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, United Motors Lanka's Interest Coverage distribution charts can be found below:

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


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United Motors Lanka 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 Motors Lanka'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 Motors Lanka's Interest Expense was රු-462 Mil. Its Operating Income was රු89 Mil. And its Long-Term Debt & Capital Lease Obligation was රු259 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*88.624/-461.762
=0.19

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

Here, for the three months ended in Mar. 2025, United Motors Lanka's Interest Expense was රු-120 Mil. Its Operating Income was රු62 Mil. And its Long-Term Debt & Capital Lease Obligation was රු259 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*61.694/-119.883
=0.51

* 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 Motors Lanka  (COL:UML.N0000) 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 Motors Lanka Interest Coverage Related Terms

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


United Motors Lanka Business Description

Traded in Other Exchanges
N/A
Address
No. 100, Hyde Park Corner, P.O. Box 697, Colombo, LKA, 02
United Motors Lanka PLC is a Sri Lanka-based company engaged in the import and sale of various branded vehicles, spare parts, and lubricants, and the provision of after-sales services, and related services. The company is a distributor of brand new Mitsubishi and Fuso vehicles, genuine spares of brands, and provides after-sales service, Valvoline lubricants, pre-stone auto chemical products from USA, and Simoniz car care products from USA, form labs, Nasiol nano-coating products, and Ultimaker 3D printing equipment.

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