ACI (DHA:ACI) Interest Coverage : 1.13 (As of Mar. 2025)

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What is ACI 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. ACI's Operating Income for the three months ended in Mar. 2025 was BDT2,538 Mil. ACI's Interest Expense for the three months ended in Mar. 2025 was BDT-2,248 Mil. ACI's interest coverage for the quarter that ended in Mar. 2025 was 1.13. The higher the ratio, the stronger the company's financial strength is.

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

DHA:ACI' s Interest Coverage Range Over the Past 10 Years
Min: 0.87 Med: 1.39 Max: 2.16
Current: 1.02

DHA:ACI's Interest Coverage is ranked worse than
90.61% of 426 companies
in the Conglomerates industry
Industry Median: 5.065 vs DHA:ACI: 1.02

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

ACI Interest Coverage Historical Data

The historical data trend for ACI'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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ACI Interest Coverage Chart

ACI Annual Data

Trend

Dec13

Dec14

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Interest Coverage

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0.87

1.43

1.52

1.11

0.98

ACI 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															1.05	0.76	0.94	1.18	1.13

Competitive Comparison of ACI's Interest Coverage

For the Conglomerates subindustry, ACI'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.

ACI's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, ACI's Interest Coverage distribution charts can be found below:

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

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ACI 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.

ACI's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, ACI's Interest Expense was BDT-6,448 Mil. Its Operating Income was BDT6,334 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT9,464 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2024 )	/	Interest Expense (A: Jun. 2024 )
	=	-1	*	6333.562	/	-6448.133
	=	0.98

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

Here, for the three months ended in Mar. 2025, ACI's Interest Expense was BDT-2,248 Mil. Its Operating Income was BDT2,538 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT8,334 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	2538.149	/	-2248.397
	=	1.13

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

ACI (DHA:ACI) 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 .

ACI Interest Coverage Related Terms

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

ACI Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » ACI Ltd (DHA:ACI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

ACI Centre, 245, Tejgaon Industrial Area, Dhaka, BGD, 1208

Website

https://www.aci-bd.com

ACI Ltd is a Bangladesh-based company engaged in the manufacturing of pharmaceuticals, consumer brands, animal health products, and also markets along with agrochemicals, seeds, and other consumer brand items. The operating segments of the company are Pharmaceuticals, Crop Care and Public Health, Animal Health, Consumer Brands, Motors, Pure Flour, Retail Chain, Salt, Foods, HealthCare, Premio Plastics, and Premiaflex Plastics. The group generates the majority of its revenue from the Motors segment, followed by the Retail chain segment. The motor segment is engaged in the buying, manufacturing, and selling of Yamaha motorcycles and agricultural equipment. The retail chain segment is engaged in facilitating modern self-service shopping options to customers.