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. Active Fine Chemicals's
Operating Income
for the
three
months ended in Mar. 2023 was BDT47 Mil. Active Fine Chemicals's Interest Expense for the
three
months ended in Mar. 2023 was BDT-75 Mil.
Active Fine Chemicals's interest coverage for the quarter that ended in Mar. 2023 was 0.62.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Active Fine Chemicals's Interest Coverage or its related term are showing as below:
DHA:ACTIVEFINE's Interest Coverage is not ranked *
in the Chemicals industry.
Industry Median: 10.21 * Ranked among companies with meaningful Interest Coverage only.
Active Fine Chemicals (DHA:ACTIVEFINE) 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 .
Active Fine Chemicals Interest Coverage Related Terms
Active Fine Chemicals Interest Coverage Historical Data
* Premium members only.
The historical data trend for Active Fine Chemicals'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.
DHA:ACTIVEFINE vs DOW, CE: Interest Coverage Comparison
For the Chemicals subindustry, Active Fine Chemicals'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.
Active Fine Chemicals Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Active Fine Chemicals's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Active Fine Chemicals's Interest Coverage falls into.
Active Fine Chemicals 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:
* 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.
Active Fine Chemicals (DHA:ACTIVEFINE) has a Interest Coverage of 0.62 as of Mar. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Active Fine Chemicals and its competitors.
Is Active Fine Chemicals' Interest Coverage too high?
Active Fine Chemicals' current Interest Coverage is 0.62. The Chemicals industry median Interest Coverage is 10.21. Active Fine Chemicals' value of 0.62 is 93.9% below this industry median. Overall, Active Fine Chemicals has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Active Fine Chemicals' Interest Coverage compare to DOW and CE?
Active Fine Chemicals' Interest Coverage of 0.62 can be compared against companies in the Chemicals industry. The industry median Interest Coverage is 10.21. Active Fine Chemicals' value of 0.62 is 93.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.21, based on 1,237 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Active Fine Chemicals's current Interest Coverage of 0.62 is 93.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Active Fine Chemicals and its competitors. For the Chemicals industry, the median Interest Coverage is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Active Fine Chemicals's current Interest Coverage is 0.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Active Fine Chemicals stock overvalued right now?
Active Fine Chemicals (DHA:ACTIVEFINE) has a current Interest Coverage of 0.62. The current Interest Coverage is 0.62 and 93.9% below the Chemicals industry median of 10.21. Active Fine Chemicals' overall GF Score™ is 10/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Active Fine Chemicals (DHA:ACTIVEFINE), the current Interest Coverage is 0.62 as of Mar. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Active Fine Chemicals Ltd is a Bangladesh based chemical company engaged in manufacturing active pharmaceutical ingredients and laboratory reagents. Its product offerings include azithromycin dihydrate, erythromycin ethyl succinate, erythromycin stearate, pantoprazole sodium sesquihydrate, venlafaxine HCL, sitagliptin phosphate monohydrate, and pregabalin. While it also manufactures laboratory reagents including HPLC Grade solvents, solvents, and powder reagents.
10GF Score
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