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Meghna Petroleum (DHA:MPETROLEUM) Interest Coverage : 3.98 (As of Sep. 2024)


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What is Meghna Petroleum 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. Meghna Petroleum's Operating Income for the three months ended in Sep. 2024 was BDT360 Mil. Meghna Petroleum's Interest Expense for the three months ended in Sep. 2024 was BDT-91 Mil. Meghna Petroleum's interest coverage for the quarter that ended in Sep. 2024 was 3.98. The higher the ratio, the stronger the company's financial strength is.

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

DHA:MPETROLEUM' s Interest Coverage Range Over the Past 10 Years
Min: 2.72   Med: 4.9   Max: 7.14
Current: 6.79


DHA:MPETROLEUM's Interest Coverage is ranked better than
54.19% of 716 companies
in the Oil & Gas industry
Industry Median: 5.935 vs DHA:MPETROLEUM: 6.79

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 Petroleum Interest Coverage Historical Data

The historical data trend for Meghna Petroleum'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 Petroleum Interest Coverage Chart

Meghna Petroleum Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.65 4.70 4.46 6.67 4.88

Meghna Petroleum Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.68 4.95 6.23 11.32 3.98

Competitive Comparison of Meghna Petroleum's Interest Coverage

For the Oil & Gas Refining & Marketing subindustry, Meghna Petroleum'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 Petroleum's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Meghna Petroleum's Interest Coverage distribution charts can be found below:

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


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Meghna Petroleum 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.

Meghna Petroleum'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, Meghna Petroleum's Interest Expense was BDT-317 Mil. Its Operating Income was BDT1,549 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT116 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*1548.505/-317.332
=4.88

Meghna Petroleum's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Meghna Petroleum's Interest Expense was BDT-91 Mil. Its Operating Income was BDT360 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT105 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*360.298/-90.525
=3.98

* 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.


Meghna Petroleum  (DHA:MPETROLEUM) 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 Petroleum Interest Coverage Related Terms

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


Meghna Petroleum Business Description

Traded in Other Exchanges
N/A
Address
58-59 Agrabad Commercial Area, Chittagong, BGD, 4100
Meghna Petroleum Ltd is engaged in the business of petroleum oil and its related products. The company is involved in the procurement, storage, and marketing of petroleum products, lubricants oil and grease, bitumen, liquefied petroleum gas, and battery water in Bangladesh. The business has two reportable segments- petroleum products and lubricants oil and grease.

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