Ambani Orgochem (NSE:AMBANIORGO) Interest Coverage : 0.39 (As of Mar. 2024)

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What is Ambani Orgochem 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. Ambani Orgochem's Operating Income for the six months ended in Mar. 2024 was ₹23 Mil. Ambani Orgochem's Interest Expense for the six months ended in Mar. 2024 was ₹-58 Mil. Ambani Orgochem's interest coverage for the quarter that ended in Mar. 2024 was 0.39. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Ambani Orgochem Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

NSE:AMBANIORGO' s Interest Coverage Range Over the Past 10 Years
Min: 0.39 Med: 2.24 Max: 2.8
Current: 0.39

NSE:AMBANIORGO's Interest Coverage is ranked worse than
98.15% of 1188 companies
in the Chemicals industry
Industry Median: 9.81 vs NSE:AMBANIORGO: 0.39

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

Ambani Orgochem Interest Coverage Historical Data

The historical data trend for Ambani Orgochem'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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Ambani Orgochem Interest Coverage Chart

Ambani Orgochem Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

Get a 7-Day Free Trial

2.35

2.80

2.12

0.39

Ambani Orgochem Semi-Annual Data
	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23	Mar24
Interest Coverage	Get a 7-Day Free Trial			2.35	2.35	2.80	2.12	0.39

Competitive Comparison of Ambani Orgochem's Interest Coverage

For the Specialty Chemicals subindustry, Ambani Orgochem'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.

Ambani Orgochem's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ambani Orgochem's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ambani Orgochem's Interest Coverage falls into.

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Ambani Orgochem 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.

Ambani Orgochem's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, Ambani Orgochem's Interest Expense was ₹-58 Mil. Its Operating Income was ₹23 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹233 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	22.592	/	-57.915
	=	0.39

Ambani Orgochem's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the six months ended in Mar. 2024, Ambani Orgochem's Interest Expense was ₹-58 Mil. Its Operating Income was ₹23 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹233 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	22.592	/	-57.915
	=	0.39

The higher the ratio, the stronger the company's Financial Strength is.

Ambani Orgochem (NSE:AMBANIORGO) 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 .

Ambani Orgochem Interest Coverage Related Terms

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

Ambani Orgochem Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Ambani Orgochem Ltd (NSE:AMBANIORGO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Western Express Highway, 801, 8th Floor, 351 - ICON, Next to Natraj Rustomji, Andheri (East), Mumbai, MH, IND, 400069

Website

https://www.ambaniorganics.com

Ambani Orgochem Ltd operates in the specialty chemicals industry. It is a manufacturer, processor, importer, supplier, and exporter of chemicals and dyes used in the Painting and Textile Industry. Its product portfolio includes organic peroxides, paint driers, accelerators, and acrylic emulsions. Geographically, it derives a majority of its revenue from India.

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