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Aurobindo Pharma (NSE:AUROPHARMA) Interest Coverage : 10.21 (As of Dec. 2024)


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What is Aurobindo Pharma 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. Aurobindo Pharma's Operating Income for the three months ended in Dec. 2024 was ₹12,093 Mil. Aurobindo Pharma's Interest Expense for the three months ended in Dec. 2024 was ₹-1,185 Mil. Aurobindo Pharma's interest coverage for the quarter that ended in Dec. 2024 was 10.21. The higher the ratio, the stronger the company's financial strength is.

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

NSE:AUROPHARMA' s Interest Coverage Range Over the Past 10 Years
Min: 12.22   Med: 34.37   Max: 89.58
Current: 12.22


NSE:AUROPHARMA's Interest Coverage is ranked worse than
50.75% of 668 companies
in the Drug Manufacturers industry
Industry Median: 13.03 vs NSE:AUROPHARMA: 12.22

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


Aurobindo Pharma Interest Coverage Historical Data

The historical data trend for Aurobindo Pharma'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.

Aurobindo Pharma Interest Coverage Chart

Aurobindo Pharma Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.83 75.15 89.58 19.68 16.38

Aurobindo Pharma Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 15.59 20.68 10.95 10.50 10.21

Competitive Comparison of Aurobindo Pharma's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Aurobindo Pharma'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.


Aurobindo Pharma's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aurobindo Pharma's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Aurobindo Pharma's Interest Coverage falls into.


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Aurobindo Pharma 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.

Aurobindo Pharma'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, Aurobindo Pharma's Interest Expense was ₹-2,681 Mil. Its Operating Income was ₹43,907 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹23,874 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*43907.1/-2680.9
=16.38

Aurobindo Pharma's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Aurobindo Pharma's Interest Expense was ₹-1,185 Mil. Its Operating Income was ₹12,093 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*12092.8/-1184.8
=10.21

* 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.


Aurobindo Pharma  (NSE:AUROPHARMA) 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 .


Aurobindo Pharma Interest Coverage Related Terms

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Aurobindo Pharma Business Description

Traded in Other Exchanges
Address
Plot No. 1, Survey No. 83/1, Galaxy, Floors 22-24, Hyderabad Knowledge City, Raidurg Panmaktha, Ranga Reddy District, Hyderabad, TG, IND, 500032
Aurobindo Pharma Ltd is a specialty and generic drug manufacturing company. It is principally engaged in the manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals, and related services. Its formulations target key therapeutic areas, including Central Nervous System (CNS), Antibiotics, Anti-diabetics, Cardiovascular, Anti-retroviral, Gastroenterology, Oncology, and Dermatology. The operating and reportable segments of the company are; India, the United States of America, Europe, and the Rest of the World. The company generates a majority of its revenue from its business in the United States of America.

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