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Pakistan Petroleum (KAR:PPL) Interest Coverage : 46.73 (As of Mar. 2025)


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What is Pakistan 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. Pakistan Petroleum's Operating Income for the three months ended in Mar. 2025 was ₨31,398 Mil. Pakistan Petroleum's Interest Expense for the three months ended in Mar. 2025 was ₨-672 Mil. Pakistan Petroleum's interest coverage for the quarter that ended in Mar. 2025 was 46.73. 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. Pakistan Petroleum Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

KAR:PPL' s Interest Coverage Range Over the Past 10 Years
Min: 35.73   Med: 83.81   Max: 121.32
Current: 52.2


KAR:PPL's Interest Coverage is ranked better than
81.31% of 717 companies
in the Oil & Gas industry
Industry Median: 5.96 vs KAR:PPL: 52.20

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


Pakistan Petroleum Interest Coverage Historical Data

The historical data trend for Pakistan 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.

* Premium members only.

Pakistan Petroleum Interest Coverage Chart

Pakistan 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 59.24 59.75 71.91 100.00 93.32

Pakistan Petroleum 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 107.99 67.09 57.40 45.07 46.73

Competitive Comparison of Pakistan Petroleum's Interest Coverage

For the Oil & Gas E&P subindustry, Pakistan 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.


Pakistan Petroleum's Interest Coverage Distribution in the Oil & Gas Industry

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

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


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Pakistan 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.

Pakistan 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, Pakistan Petroleum's Interest Expense was ₨-1,598 Mil. Its Operating Income was ₨149,080 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨1,136 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*149079.59/-1597.559
=93.32

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

Here, for the three months ended in Mar. 2025, Pakistan Petroleum's Interest Expense was ₨-672 Mil. Its Operating Income was ₨31,398 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨1,288 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*31398.041/-671.956
=46.73

* 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.


Pakistan Petroleum  (KAR:PPL) 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 .


Pakistan Petroleum Interest Coverage Related Terms

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


Pakistan Petroleum Business Description

Traded in Other Exchanges
N/A
Address
Dr. Ziauddin Ahmed Road, P.O. Box 3942, 4th Floor, PIDC House, Karachi, SD, PAK, 75530
Pakistan Petroleum Ltd, or PPL along with its subsidiaries is engaged in conducting exploration, prospecting, development, and production of oil and natural gas resources. The company is organised into one operating segment i.e. exploration, development and production of oil, gas and barytes. It operates several producing fields across the country at Sui, Adhi, Kandhkot, Chachar, Mazarani, Adam, Adam West, Shadadpur and Shahdadpur West.