Aditya Ultra Steel (NSE:AUSL) Interest Coverage : 2.50 (As of Sep. 2024)

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What is Aditya Ultra Steel 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. Aditya Ultra Steel's Operating Income for the six months ended in Sep. 2024 was ₹95 Mil. Aditya Ultra Steel's Interest Expense for the six months ended in Sep. 2024 was ₹-38 Mil. Aditya Ultra Steel's interest coverage for the quarter that ended in Sep. 2024 was 2.50. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Aditya Ultra Steel's Interest Coverage or its related term are showing as below:

NSE:AUSL' s Interest Coverage Range Over the Past 10 Years
Min: 1.81 Med: 2.55 Max: 3.19
Current: 2.5

NSE:AUSL's Interest Coverage is ranked worse than
65.84% of 445 companies
in the Steel industry
Industry Median: 5.14 vs NSE:AUSL: 2.50

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

Aditya Ultra Steel Interest Coverage Historical Data

The historical data trend for Aditya Ultra Steel'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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Aditya Ultra Steel Interest Coverage Chart

Aditya Ultra Steel Annual Data

Trend

Mar22

Mar23

Mar24

Interest Coverage

3.19

1.81

2.55

Aditya Ultra Steel Semi-Annual Data
	Mar22	Mar23	Mar24	Sep24
Interest Coverage	N/A	N/A	N/A	2.50

Competitive Comparison of Aditya Ultra Steel's Interest Coverage

For the Steel subindustry, Aditya Ultra Steel'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.

Aditya Ultra Steel's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Aditya Ultra Steel's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Aditya Ultra Steel's Interest Coverage falls into.

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Aditya Ultra Steel 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.

Aditya Ultra Steel'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, Aditya Ultra Steel's Interest Expense was ₹-64 Mil. Its Operating Income was ₹164 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹65 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	164.376	/	-64.394
	=	2.55

Aditya Ultra Steel's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the six months ended in Sep. 2024, Aditya Ultra Steel's Interest Expense was ₹-38 Mil. Its Operating Income was ₹95 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹67 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	94.94	/	-37.959
	=	2.50

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

Aditya Ultra Steel (NSE:AUSL) 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 .

Aditya Ultra Steel Interest Coverage Related Terms

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Aditya Ultra Steel Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Aditya Ultra Steel Ltd (NSE:AUSL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

National Highway 8-A, Survey No-48, Wankarner Boudry, Bhalgam, Wankaner, Rajkot, GJ, IND, 363621

Website

https://www.aditya-ultra-steel.com

Aditya Ultra Steel Ltd is engaged in manufacturing rolled steel products, such as TMT bars under the Kamdhenu brand, catering mainly to the construction industry and infrastructure development. The company manufactures TMT bars from billets through a reheating furnace and rolling mill. The company designs and manufactures TMT bars and sells it on B2B Basis. Its customer base is mainly spread across the State of Gujarat.

Aditya Ultra Steel Headlines

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