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Maksons Spinning Mills (DHA:MAKSONSPIN) Interest Coverage : 0.04 (As of Mar. 2025)


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What is Maksons Spinning 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. Maksons Spinning Mills's Operating Income for the three months ended in Mar. 2025 was BDT11 Mil. Maksons Spinning Mills's Interest Expense for the three months ended in Mar. 2025 was BDT-264 Mil. Maksons Spinning Mills's interest coverage for the quarter that ended in Mar. 2025 was 0.04. The higher the ratio, the stronger the company's financial strength is.

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


DHA:MAKSONSPIN's Interest Coverage is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 5.015
* Ranked among companies with meaningful Interest Coverage only.

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


Maksons Spinning Mills Interest Coverage Historical Data

The historical data trend for Maksons Spinning 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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Maksons Spinning Mills Interest Coverage Chart

Maksons Spinning Mills Annual Data
Trend Sep14 Sep15 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.93 2.88 3.01 - 0.05

Maksons Spinning Mills Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 - 1.15 0.16 - 0.04

Competitive Comparison of Maksons Spinning Mills's Interest Coverage

For the Textile Manufacturing subindustry, Maksons Spinning 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.


Maksons Spinning Mills's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Maksons Spinning Mills's Interest Coverage falls into.


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Maksons Spinning 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.

Maksons Spinning Mills'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, Maksons Spinning Mills's Interest Expense was BDT-787 Mil. Its Operating Income was BDT37 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT992 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*37.402/-786.77
=0.05

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

Here, for the three months ended in Mar. 2025, Maksons Spinning Mills's Interest Expense was BDT-264 Mil. Its Operating Income was BDT11 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT1,751 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*11.066/-264.295
=0.04

* 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.


Maksons Spinning Mills  (DHA:MAKSONSPIN) 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 .


Maksons Spinning Mills Interest Coverage Related Terms

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


Maksons Spinning Mills Business Description

Traded in Other Exchanges
N/A
Address
House No. 17, Road No. 6, Sector No. 1, Uttara Model Town, Dhaka, BGD, 1230
Maksons Spinning Mills PLC is a Bangladesh-based company in the production and sale of cotton yarn and also it offers cotton combed and carded yarn to the export-oriented readymade garments and knitting industries. The company's specialties are following Carded Yarn, Organic Yarn (Carded, Combed, Slub, Grey melange), Combed Yarn, Slub Yarn, BCI Yarn, Compact Combed Yarn, Grey Melange Yarn, and slub yarn.

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