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Pak Elektron (KAR:PAEL) Interest Coverage : 2.65 (As of Mar. 2025)


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What is Pak Elektron 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. Pak Elektron's Operating Income for the three months ended in Mar. 2025 was ₨1,876 Mil. Pak Elektron's Interest Expense for the three months ended in Mar. 2025 was ₨-709 Mil. Pak Elektron's interest coverage for the quarter that ended in Mar. 2025 was 2.65. The higher the ratio, the stronger the company's financial strength is.

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

KAR:PAEL' s Interest Coverage Range Over the Past 10 Years
Min: 1.25   Med: 2.19   Max: 5.05
Current: 2.4


KAR:PAEL's Interest Coverage is ranked worse than
85.51% of 1601 companies
in the Hardware industry
Industry Median: 13.09 vs KAR:PAEL: 2.40

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


Pak Elektron Interest Coverage Historical Data

The historical data trend for Pak Elektron'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.

Pak Elektron Interest Coverage Chart

Pak Elektron Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.25 2.41 1.73 1.66 2.23

Pak Elektron 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 2.05 2.48 1.73 2.95 2.65

Competitive Comparison of Pak Elektron's Interest Coverage

For the Consumer Electronics subindustry, Pak Elektron'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.


Pak Elektron's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Pak Elektron's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Pak Elektron's Interest Coverage falls into.


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Pak Elektron 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.

Pak Elektron'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, Pak Elektron's Interest Expense was ₨-3,491 Mil. Its Operating Income was ₨7,780 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨4,304 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*7780.05/-3491.213
=2.23

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

Here, for the three months ended in Mar. 2025, Pak Elektron's Interest Expense was ₨-709 Mil. Its Operating Income was ₨1,876 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨3,856 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*1876.142/-709.064
=2.65

* 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.


Pak Elektron  (KAR:PAEL) 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 .


Pak Elektron Interest Coverage Related Terms

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


Pak Elektron Business Description

Traded in Other Exchanges
N/A
Address
14-Km, Ferozepur Road, G.P.O. Box 1614, Lahore, PAK, 54760
Pak Elektron Ltd is a company that engages in the manufacturing and sale of electrical capital goods and domestic appliances. It operates through the following divisions: Power and Appliances: The Power division manufactures and distributes transformers, switchgear, energy meters, and engineering, procurement, and construction (EPC) contracting; The Appliances division manufactures, assembles, and distributes refrigerators, deep freezers, air conditioners, microwave ovens, LED televisions, washing machines, water dispensers, and other domestic appliances. The group generates maximum revenue from the Power division.

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