Meghna Insurance (DHA:MEGHNAINS) Interest Coverage: 142.01 (As of Mar. 2026) — 73% Above Median

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DHA:MEGHNAINS Meghna Insurance PLC DHA:MEGHNAINS
64 GF Score
Price BDT39.30
GF Value BDT29.27
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Meghna Insurance Interest Coverage?

Meghna Insurance DHA:MEGHNAINS -1.50% 64 Interest Coverage is 142.01 as of Mar. 2026, which is 73% above its 10-year median of 82.27. GuruFocus rates DHA:MEGHNAINS with a GF Score™ of 64/100 and a GF Value™ of BDT29.27 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 350 Insurance companies, Meghna Insurance ranks better than 79.14% on this metric.

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's EBIT for the three months ended in Mar. 2026 was BDT26.8 Mil. Meghna Insurance's Interest Expense for the three months ended in Mar. 2026 was BDT-0.2 Mil. Meghna Insurance's interest coverage for the quarter that ended in Mar. 2026 was 142.01. 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 PLC has enough cash to cover all of its debt. Its financial situation is stable.

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

DHA:MEGHNAINS' s Interest Coverage Range Over the Past 10 Years
Min: 8.61   Med: 82.27   Max: 135.37
Current: 91.72


DHA:MEGHNAINS's Interest Coverage is ranked better than
79.14% of 350 companies
in the Insurance industry
Industry Median: 16.145 vs DHA:MEGHNAINS: 91.72

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  (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 Interest Coverage Related Terms


Meghna Insurance Interest Coverage Historical Data

* Premium members only.

The historical data trend for Meghna Insurance'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.

Meghna Insurance Interest Coverage Chart

Meghna Insurance Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
8.61 82.27 90.42 135.37 79.67

Meghna Insurance Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 90.79 63.57 76.75 90.26 142.01

DHA:MEGHNAINS vs CB, PGR, TRV: Interest Coverage Comparison

For the Insurance - Property & Casualty subindustry, Meghna Insurance'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 Interest Coverage vs Insurance Industry

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

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


DHA:MEGHNAINS
64GF Score
Meghna Insurance PLC DHA:MEGHNAINS
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Meghna Insurance 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's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Meghna Insurance's Interest Expense was BDT-0.8 Mil. Its EBIT was BDT63.9 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT5.0 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*63.894/-0.802
=79.67

Meghna Insurance's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Meghna Insurance's Interest Expense was BDT-0.2 Mil. Its EBIT was BDT26.8 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT4.0 Mil.

Interest Coverage=-1* EBIT (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*26.839/-0.189
=142.01

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 142.01 mean?
Meghna Insurance (DHA:MEGHNAINS) has a Interest Coverage of 142.01 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Meghna Insurance and its competitors. This is 73% above median its historical median of 82.27. Over the past decade, Meghna Insurance's Interest Coverage has ranged from 8.61 to 135.37. According to the industry distribution chart, Meghna Insurance ranks #73 out of 350 companies in the Insurance industry, placing it in the top 20.9%.
Is Meghna Insurance's Interest Coverage too high?
Meghna Insurance's current Interest Coverage of 142.01 is 73% above median its 10-year median of 82.27. Over the past 10 years, this metric has ranged from a low of 8.61 to a high of 135.37. The Insurance industry median Interest Coverage is 16.15. Meghna Insurance's value of 142.01 is 779.6% above this industry median. Based on the distribution chart, Meghna Insurance ranks #73 out of 350 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Meghna Insurance has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meghna Insurance's Interest Coverage compare to CB and PGR?
According to the Insurance industry distribution chart, Meghna Insurance ranks #73 out of 350 companies for Interest Coverage. This places Meghna Insurance in the top 21% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 16.15. Meghna Insurance's value of 142.01 is 779.6% above this benchmark. Historically, Meghna Insurance's own Interest Coverage has ranged from 8.61 to 135.37 over the past decade. While the company's 10-year median is 82.27 vs. the industry median of 16.15, Meghna Insurance has consistently been above the industry average. 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 an Insurance company?
The median Interest Coverage among Insurance companies is 16.15, based on 350 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. Meghna Insurance's current Interest Coverage of 142.01 is 779.6% above 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 Meghna Insurance and its competitors. For the Insurance industry, the median Interest Coverage is 16.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meghna Insurance's current Interest Coverage is 142.01, which is 73% above median its own 10-year median of 82.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meghna Insurance stock overvalued right now?
Based on GuruFocus' analysis, Meghna Insurance (DHA:MEGHNAINS) is currently considered Significantly Overvalued. The stock's GF Value™ is BDT29.27, compared to a current price of BDT39.30 — trading 34.3% above its estimated fair value. The current Interest Coverage is 142.01, which is 73% above median its 10-year median of 82.27 and 779.6% above the Insurance industry median of 16.15. Meghna Insurance's overall GF Score™ is 64/100 with 2 warning signs to review. 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 Meghna Insurance (DHA:MEGHNAINS), the current Interest Coverage is 142.01 as of Mar. 2026. 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.

Is Meghna Insurance (DHA:MEGHNAINS) Overvalued in 2026?

Based on GuruFocus' analysis, Meghna Insurance stock appears to be overvalued. The current stock price of BDT39.30 is trading 34.3% above its estimated GF Value™ of BDT29.27. GuruFocus considers Meghna Insurance to be Significantly Overvalued.

Key valuation signals for DHA:MEGHNAINS:

  • Interest Coverage: 142.01 (73% above median its 10-year median of 82.27)
  • GF Value™: BDT29.27 vs. price of BDT39.30 (34.3% above fair value)
  • GF Score™: 64/100 with 2 warning signs
  • Industry Position: 779.6% above the Insurance median (#73 of 350)

No single metric tells the full story. See the DHA:MEGHNAINS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Meghna Insurance Business Description

Address 37/2, Purana Panltan, Pritom Zaman Tower, 4th Floor, Dhaka, BGD, 1000
Meghna Insurance PLC, formerly Meghna Insurance Co Ltd carries on all kinds of insurance, guarantee, and indemnity business other than life insurance business. The company has four 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.
64GF Score

Get the complete analysis for DHA:MEGHNAINS

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

BDT39.30
Price
BDT29.27
GF Value