Meghna Insurance Co (DHA:MEGHNAINS) Interest Coverage : 90.79 (As of Mar. 2025)

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What is Meghna Insurance Co 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 EBIT by its Interest Expense. Meghna Insurance Co's EBIT for the three months ended in Mar. 2025 was BDT15.80 Mil. Meghna Insurance Co's Interest Expense for the three months ended in Mar. 2025 was BDT-0.17 Mil. Meghna Insurance Co's interest coverage for the quarter that ended in Mar. 2025 was 90.79. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Meghna Insurance Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

DHA:MEGHNAINS' s Interest Coverage Range Over the Past 10 Years
Min: 82.38 Med: 112.9 Max: 135.37
Current: 82.38

DHA:MEGHNAINS's Interest Coverage is ranked better than
76.19% of 336 companies
in the Insurance industry
Industry Median: 13.81 vs DHA:MEGHNAINS: 82.38

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

Meghna Insurance Co Interest Coverage Historical Data

The historical data trend for Meghna Insurance Co'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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Meghna Insurance Co Interest Coverage Chart

Meghna Insurance Co Annual Data

Trend

Dec23

Dec24

Interest Coverage

90.42

135.37

Meghna Insurance Co Quarterly Data
	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial			303.26	24.65	65.34	150.13	90.79

Competitive Comparison of Meghna Insurance Co's Interest Coverage

For the Insurance - Property & Casualty subindustry, Meghna Insurance Co'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.

Meghna Insurance Co's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Meghna Insurance Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Meghna Insurance Co's Interest Coverage falls into.

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Meghna Insurance Co 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

Meghna Insurance Co's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Meghna Insurance Co's Interest Expense was BDT-0.56 Mil. Its EBIT was BDT75.27 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT5.20 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	75.267	/	-0.556
	=	135.37

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

Here, for the three months ended in Mar. 2025, Meghna Insurance Co's Interest Expense was BDT-0.17 Mil. Its EBIT was BDT15.80 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT6.97 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	15.797	/	-0.174
	=	90.79

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

Meghna Insurance Co (DHA:MEGHNAINS) 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 .

Meghna Insurance Co Interest Coverage Related Terms

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

Meghna Insurance Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Meghna Insurance Co Ltd (DHA:MEGHNAINS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

37/2, Purana Panltan, Pritom Zaman Tower, 4th Floor, Dhaka, BGD, 1000

Website

https://www.micl.com.bd

Meghna Insurance Co Ltd carries on all kinds of insurance, guarantee, and indemnity business other than life insurance business. The company has four primary business segments for reporting purposes namely fire, marine, motor, and miscellaneous. The company engages in the underwriting business of the company and covers fire insurance, marine insurance, motor insurance, and miscellaneous insurance businesses.

Meghna Insurance Co Headlines

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