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Baba Food Processing (India) (NSE:BABAFP) Interest Coverage : 4.00 (As of Sep. 2024)


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What is Baba Food Processing (India) 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. Baba Food Processing (India)'s Operating Income for the six months ended in Sep. 2024 was ₹31 Mil. Baba Food Processing (India)'s Interest Expense for the six months ended in Sep. 2024 was ₹-8 Mil. Baba Food Processing (India)'s interest coverage for the quarter that ended in Sep. 2024 was 4.00. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Baba Food Processing (India)'s Interest Coverage or its related term are showing as below:

NSE:BABAFP' s Interest Coverage Range Over the Past 10 Years
Min: 2.7   Med: 3.26   Max: 4.64
Current: 4.2


NSE:BABAFP's Interest Coverage is ranked worse than
65.65% of 1473 companies
in the Consumer Packaged Goods industry
Industry Median: 8.36 vs NSE:BABAFP: 4.20

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


Baba Food Processing (India) Interest Coverage Historical Data

The historical data trend for Baba Food Processing (India)'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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Baba Food Processing (India) Interest Coverage Chart

Baba Food Processing (India) Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Interest Coverage
2.70 2.73 3.79 4.64

Baba Food Processing (India) Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24
Interest Coverage Get a 7-Day Free Trial N/A N/A 4.85 4.37 4.00

Competitive Comparison of Baba Food Processing (India)'s Interest Coverage

For the Packaged Foods subindustry, Baba Food Processing (India)'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.


Baba Food Processing (India)'s Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Baba Food Processing (India)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Baba Food Processing (India)'s Interest Coverage falls into.


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Baba Food Processing (India) 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.

Baba Food Processing (India)'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, Baba Food Processing (India)'s Interest Expense was ₹-21 Mil. Its Operating Income was ₹99 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹93 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*98.674/-21.275
=4.64

Baba Food Processing (India)'s Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the six months ended in Sep. 2024, Baba Food Processing (India)'s Interest Expense was ₹-8 Mil. Its Operating Income was ₹31 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹174 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*31.467/-7.873
=4.00

* 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.


Baba Food Processing (India)  (NSE:BABAFP) 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 .


Baba Food Processing (India) Interest Coverage Related Terms

Thank you for viewing the detailed overview of Baba Food Processing (India)'s Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Baba Food Processing (India) Business Description

Traded in Other Exchanges
N/A
Address
Ratu Road, 6th Floor, Home Decor Building, Opposite Durga Mandir, Ranchi, JH, IND, 834001
Baba Food Processing (India) Ltd is engaged in the business of manufacturing high fibre Whole Wheat Atta (Wheat Flour), Refined Flour (Maida), Tandoori Atta, and Semolina flour (Sooji). It also commercializes the by-product and waste material, i.e., wheat bran and other waste materials generated during its manufacturing process as cattle feed and fish feed, which makes its manufacturing unit a zero waste and zero discharge manufacturing unit.

Baba Food Processing (India) Headlines

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