Artedz Fabs (NSE:ARTEDZ) Interest Coverage: 3.32 (As of Sep. 2018)


What is Artedz Fabs Interest Coverage?

Artedz Fabs NSE:ARTEDZ Interest Coverage is 3.32 as of Sep. 2018.

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. Artedz Fabs's Operating Income for the six months ended in Sep. 2018 was ₹59.2 Mil. Artedz Fabs's Interest Expense for the six months ended in Sep. 2018 was ₹-17.8 Mil. Artedz Fabs's interest coverage for the quarter that ended in Sep. 2018 was 3.32. The higher the ratio, the stronger the company's financial strength is.

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


NSE:ARTEDZ's Interest Coverage is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 5.43
* 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.

Artedz Fabs  (NSE:ARTEDZ) 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 .

Artedz Fabs Interest Coverage Related Terms

Artedz Fabs Interest Coverage Historical Data

* Premium members only.

The historical data trend for Artedz Fabs'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.

Artedz Fabs Interest Coverage Chart

Artedz Fabs Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18
Interest Coverage
0.79 0.68 0.88 1.69 2.35

Artedz Fabs Semi-Annual Data
Mar14 Mar15 Mar16 Mar17 Mar18 Sep18
Interest Coverage Get a 7-Day Free Trial N/A N/A N/A N/A 3.32

NSE:ARTEDZ vs : Interest Coverage Comparison

For the Textile Manufacturing subindustry, Artedz Fabs'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.

Artedz Fabs Interest Coverage vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Artedz Fabs's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Artedz Fabs's Interest Coverage falls into.


Artedz Fabs 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.

Artedz Fabs's Interest Coverage for the fiscal year that ended in Mar. 2018 is calculated as

Here, for the fiscal year that ended in Mar. 2018, Artedz Fabs's Interest Expense was ₹-38.2 Mil. Its Operating Income was ₹89.9 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹71.0 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2018 )/Interest Expense (A: Mar. 2018 )
=-1*89.92/-38.234
=2.35

Artedz Fabs's Interest Coverage for the quarter that ended in Sep. 2018 is calculated as

Here, for the six months ended in Sep. 2018, Artedz Fabs's Interest Expense was ₹-17.8 Mil. Its Operating Income was ₹59.2 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹79.2 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2018 )/Interest Expense (Q: Sep. 2018 )
=-1*59.181/-17.827
=3.32

* 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 3.32 mean?
Artedz Fabs (NSE:ARTEDZ) has a Interest Coverage of 3.32 as of Sep. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Artedz Fabs and its competitors.
Is Artedz Fabs' Interest Coverage too high?
Artedz Fabs' current Interest Coverage is 3.32. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.43. Artedz Fabs' value of 3.32 is 38.9% below this industry median.
How does Artedz Fabs' Interest Coverage compare to ?
Artedz Fabs' Interest Coverage of 3.32 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Interest Coverage is 5.43. Artedz Fabs' value of 3.32 is 38.9% below this benchmark. 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.43, based on 741 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. Artedz Fabs's current Interest Coverage of 3.32 is 38.9% below the industry median. 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 Artedz Fabs and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Artedz Fabs's current Interest Coverage is 3.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Artedz Fabs stock overvalued right now?
Artedz Fabs (NSE:ARTEDZ) has a current Interest Coverage of 3.32. The current Interest Coverage is 3.32 and 38.9% below the Manufacturing - Apparel & Accessories industry median of 5.43. 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 Artedz Fabs (NSE:ARTEDZ), the current Interest Coverage is 3.32 as of Sep. 2018. 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.

Artedz Fabs Business Description

Comparable Companies
Address Off Aarey Road, 206, Gambhir Industrial Estate, Opposite Paramount Print, Hanuman Tekdi, Mumbai, MH, IND, 400063
Artedz Fabs Ltd is a leading manufacturer of cotton yarn dyed fabrics in India. The portfolio encompasses manufacturing of premium quality apparel fabrics for men's clothing by producing various fabric blends and selling directly to manufacturers, retailers and global brands. Besides the regular cotton qualities, it also deals in fancy yarns like slubs, blended yarns like tensil linens, cotton modals, cotton linens and lycra.