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Bashundhara Paper Mills (DHA:BPML) Interest Coverage : 1.42 (As of Dec. 2023)


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What is Bashundhara Paper Mills 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. Bashundhara Paper Mills's Operating Income for the three months ended in Dec. 2023 was BDT585 Mil. Bashundhara Paper Mills's Interest Expense for the three months ended in Dec. 2023 was BDT-413 Mil. Bashundhara Paper Mills's interest coverage for the quarter that ended in Dec. 2023 was 1.42. The higher the ratio, the stronger the company's financial strength is.

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

DHA:BPML' s Interest Coverage Range Over the Past 10 Years
Min: 1.33   Med: 1.43   Max: 1.77
Current: 1.47


DHA:BPML's Interest Coverage is ranked worse than
76.12% of 201 companies
in the Forest Products industry
Industry Median: 6.14 vs DHA:BPML: 1.47

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


Bashundhara Paper Mills Interest Coverage Historical Data

The historical data trend for Bashundhara Paper Mills'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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Bashundhara Paper Mills Interest Coverage Chart

Bashundhara Paper Mills Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
Get a 7-Day Free Trial 1.33 1.42 1.35 1.47 1.43

Bashundhara Paper Mills Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 1.20 1.39 1.43 1.63 1.42

Competitive Comparison of Bashundhara Paper Mills's Interest Coverage

For the Paper & Paper Products subindustry, Bashundhara Paper Mills'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.


Bashundhara Paper Mills's Interest Coverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Bashundhara Paper Mills's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Bashundhara Paper Mills's Interest Coverage falls into.



Bashundhara Paper Mills 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.

Bashundhara Paper Mills's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Bashundhara Paper Mills's Interest Expense was BDT-1,363 Mil. Its Operating Income was BDT1,945 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT13,777 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2023 )/Interest Expense (A: Jun. 2023 )
=-1*1945.085/-1362.802
=1.43

Bashundhara Paper Mills's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Bashundhara Paper Mills's Interest Expense was BDT-413 Mil. Its Operating Income was BDT585 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT14,846 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*585.234/-413.202
=1.42

* 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.


Bashundhara Paper Mills  (DHA:BPML) 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 .


Bashundhara Paper Mills Interest Coverage Related Terms

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


Bashundhara Paper Mills (DHA:BPML) Business Description

Traded in Other Exchanges
N/A
Address
Umme Kulsum Road, Plot No. 56/A, Block No. C, Bashundhara R/A, Dhaka, BGD, 1229
Bashundhara Paper Mills Ltd is engaged in manufacturing and marketing all kinds of paper products, tissue products, Hygienic products, feeding bottles, facial masks, paper sacks, and other consumer brand items.

Bashundhara Paper Mills (DHA:BPML) Headlines

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