REI Agro (LSE:REAA) Interest Coverage: 0 (At Loss) (As of Mar. 2014)


What is REI Agro Interest Coverage?

REI Agro LSE:REAA Interest Coverage is 0 (At Loss) as of Mar. 2014.

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. REI Agro's Operating Income for the three months ended in Mar. 2014 was $-5 Mil. REI Agro's Interest Expense for the three months ended in Mar. 2014 was $-30 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


LSE:REAA's Interest Coverage is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 8.6
* Ranked among companies with meaningful Interest Coverage only.

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


REI Agro  (LSE:REAA) 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 .


REI Agro Interest Coverage Related Terms


REI Agro Interest Coverage Historical Data

* Premium members only.

The historical data trend for REI Agro'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.

REI Agro Interest Coverage Chart

REI Agro Annual Data
Trend Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.67 2.26 1.95 2.25 1.66

REI Agro Quarterly Data
Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Dec13 Mar14
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 3.18 2.11 2.71 1.87 0.00

REI Agro Interest Coverage Competitor Comparison

For the Packaged Foods subindustry, REI Agro'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.


REI Agro Interest Coverage vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, REI Agro's Interest Coverage distribution charts can be found below:

* The bar in red indicates where REI Agro's Interest Coverage falls into.



REI Agro 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.

REI Agro's Interest Coverage for the fiscal year that ended in Mar. 2014 is calculated as

Here, for the fiscal year that ended in Mar. 2014, REI Agro's Interest Expense was $-116 Mil. Its Operating Income was $193 Mil. And its Long-Term Debt & Capital Lease Obligation was $109 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2014 )/Interest Expense (A: Mar. 2014 )
=-1*193.458/-116.472
=1.66

REI Agro's Interest Coverage for the quarter that ended in Mar. 2014 is calculated as

Here, for the three months ended in Mar. 2014, REI Agro's Interest Expense was $-30 Mil. Its Operating Income was $-5 Mil. And its Long-Term Debt & Capital Lease Obligation was $109 Mil.

REI Agro did not have earnings to cover the interest expense.

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0 (At Loss) mean?
REI Agro (LSE:REAA) has a Interest Coverage of 0 (At Loss) as of Mar. 2014. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on REI Agro and its competitors.
Is REI Agro's Interest Coverage too high?
REI Agro's current Interest Coverage is 0 (At Loss).
How does REI Agro's Interest Coverage compare to competitors?
REI Agro's Interest Coverage of 0 (At Loss) can be compared against companies in the Consumer Packaged Goods industry. The industry median Interest Coverage is 8.60. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.60, based on 1,507 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on REI Agro and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REI Agro's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REI Agro stock overvalued right now?
REI Agro (LSE:REAA) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For REI Agro (LSE:REAA), the current Interest Coverage is 0 (At Loss) as of Mar. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

REI Agro Business Description

Address 58A/1, Sainik Farm, Saket, New Delhi, IND, 110062
REI Agro Ltd is engaged in processing basmati rice and market its products under the brand name Raindrops. The company operates in two business segments - the business of processing, trading, and marketing of agro products and generation of power through Wind farm generators. The products of the company are sold both in domestic and international markets.