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Ibrahim Fibres (KAR:IBFL) Interest Coverage : 6.04 (As of Mar. 2025)


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What is Ibrahim Fibres 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. Ibrahim Fibres's Operating Income for the three months ended in Mar. 2025 was ₨1,732 Mil. Ibrahim Fibres's Interest Expense for the three months ended in Mar. 2025 was ₨-287 Mil. Ibrahim Fibres's interest coverage for the quarter that ended in Mar. 2025 was 6.04. The higher the ratio, the stronger the company's financial strength is.

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

KAR:IBFL' s Interest Coverage Range Over the Past 10 Years
Min: 0.08   Med: 3.08   Max: 16.42
Current: 4.5


KAR:IBFL's Interest Coverage is ranked worse than
52.75% of 726 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.015 vs KAR:IBFL: 4.50

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


Ibrahim Fibres Interest Coverage Historical Data

The historical data trend for Ibrahim Fibres'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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Ibrahim Fibres Interest Coverage Chart

Ibrahim Fibres Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.51 10.86 16.42 2.65 3.50

Ibrahim Fibres Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 2.32 4.19 3.64 4.51 6.04

Competitive Comparison of Ibrahim Fibres's Interest Coverage

For the Textile Manufacturing subindustry, Ibrahim Fibres'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.


Ibrahim Fibres's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Ibrahim Fibres's Interest Coverage falls into.


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Ibrahim Fibres 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.

Ibrahim Fibres'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, Ibrahim Fibres's Interest Expense was ₨-1,725 Mil. Its Operating Income was ₨6,034 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨3,182 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*6034.006/-1725.107
=3.50

Ibrahim Fibres's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Ibrahim Fibres's Interest Expense was ₨-287 Mil. Its Operating Income was ₨1,732 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨3,080 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*1731.931/-286.921
=6.04

* 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.


Ibrahim Fibres  (KAR:IBFL) 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 .


Ibrahim Fibres Interest Coverage Related Terms

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


Ibrahim Fibres Business Description

Traded in Other Exchanges
N/A
Address
15 - Club Road, Ibrahim Centre, Faisalabad, PB, PAK, 38000
Ibrahim Fibres Ltd is engaged in Textile manufacturing. Its activities include Polyester Yarn production, Polyester Staple Fibre Production, Financial Services, and Energy. Its Polyester Plants produce a wide range of Polyester Staple Fibre (PSF) in different varieties, lusters, cut lengths, and fineness. The company is engaged in two segments: Polyester and Textile spinning. The company generates the majority of its revenue from the Polyester Plants segment.

Ibrahim Fibres Headlines

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