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Murree Brewery (KAR:MUREB) Interest Coverage : 503.25 (As of Dec. 2024)


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What is Murree Brewery 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. Murree Brewery's Operating Income for the three months ended in Dec. 2024 was ₨1,204 Mil. Murree Brewery's Interest Expense for the three months ended in Dec. 2024 was ₨-2 Mil. Murree Brewery's interest coverage for the quarter that ended in Dec. 2024 was 503.25. 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. Murree Brewery Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

KAR:MUREB' s Interest Coverage Range Over the Past 10 Years
Min: 26.91   Med: 92.75   Max: 4517.89
Current: 436.89


KAR:MUREB's Interest Coverage is ranked better than
85.44% of 158 companies
in the Beverages - Alcoholic industry
Industry Median: 9.55 vs KAR:MUREB: 436.89

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


Murree Brewery Interest Coverage Historical Data

The historical data trend for Murree Brewery'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.

* Premium members only.

Murree Brewery Interest Coverage Chart

Murree Brewery 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 26.91 52.21 91.47 347.69 401.26

Murree Brewery Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 462.07 583.52 257.00 559.73 503.25

Competitive Comparison of Murree Brewery's Interest Coverage

For the Beverages - Brewers subindustry, Murree Brewery'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.


Murree Brewery's Interest Coverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Murree Brewery's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Murree Brewery's Interest Coverage falls into.


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Murree Brewery 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.

Murree Brewery'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, Murree Brewery's Interest Expense was ₨-8 Mil. Its Operating Income was ₨3,325 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨14 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*3324.817/-8.286
=401.26

Murree Brewery's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Murree Brewery's Interest Expense was ₨-2 Mil. Its Operating Income was ₨1,204 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨13 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*1204.28/-2.393
=503.25

* 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.


Murree Brewery  (KAR:MUREB) 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 .


Murree Brewery Interest Coverage Related Terms

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


Murree Brewery Business Description

Traded in Other Exchanges
N/A
Address
3-National Park Road, Chaklala Cantt, Rawalpindi, PB, PAK
Murree Brewery Ltd manufactures and sells alcoholic beers, Pakistan made foreign liquors, non-alcoholic beer, aerated water, juices and food products, mineral water, glass bottles and jars. It operates in three divisions namely Liquor Division, Tops Division, and Glass Division. The company generates maximum revenue from the Liquor Division segment. Geographically, it operates only in Pakistan.

Murree Brewery Headlines

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