DCG Cables & Wires (NSE:DCG) Interest Coverage : 3.70 (As of Mar. 2023)

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What is DCG Cables & Wires 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. DCG Cables & Wires's Operating Income for the six months ended in Mar. 2023 was ₹32.6 Mil. DCG Cables & Wires's Interest Expense for the six months ended in Mar. 2023 was ₹-8.8 Mil. DCG Cables & Wires's interest coverage for the quarter that ended in Mar. 2023 was 3.70. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for DCG Cables & Wires's Interest Coverage or its related term are showing as below:

NSE:DCG's Interest Coverage is not ranked ^*
in the Industrial Products industry.
Industry Median: 15.66
* 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.

DCG Cables & Wires Interest Coverage Historical Data

The historical data trend for DCG Cables & Wires'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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DCG Cables & Wires Interest Coverage Chart

DCG Cables & Wires Annual Data

Trend

Mar21

Mar22

Mar23

Interest Coverage

48.59

3.20

3.70

DCG Cables & Wires Semi-Annual Data
	Mar21	Mar22	Mar23
Interest Coverage	48.59	3.20	3.70

Competitive Comparison of DCG Cables & Wires's Interest Coverage

For the Electrical Equipment & Parts subindustry, DCG Cables & Wires'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.

DCG Cables & Wires's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, DCG Cables & Wires's Interest Coverage distribution charts can be found below:

* The bar in red indicates where DCG Cables & Wires's Interest Coverage falls into.

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DCG Cables & Wires 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.

DCG Cables & Wires's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, DCG Cables & Wires's Interest Expense was ₹-8.8 Mil. Its Operating Income was ₹32.6 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹32.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	32.582	/	-8.805
	=	3.70

DCG Cables & Wires's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the six months ended in Mar. 2023, DCG Cables & Wires's Interest Expense was ₹-8.8 Mil. Its Operating Income was ₹32.6 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹32.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	32.582	/	-8.805
	=	3.70

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

DCG Cables & Wires (NSE:DCG) 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 .

DCG Cables & Wires Interest Coverage Related Terms

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

DCG Cables & Wires Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » DCG Cables & Wires Ltd (NSE:DCG) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Agresen Estate, Unit 1, 622/15+16/12, Chhotalal Ni Chawli, Odhav, Ahmedabad, GJ, IND, 382415

Website

https://www.dcgcableswiresltd.com

DCG Cables & Wires Ltd is a manufacturer of copper cables and wires. It focus is on manufacturing of different types of copper cables which finds application in Transformers that consists of Copper Strips, Paper Covered Copper Strips and Wires (Kraft/Crepe/Nomex/Mica) Bare Copper Wires and Strips, Copper Tapes and Fiber Glass Copper. It also provide paper-covered copper conductors in both rectangular and round shapes, as well as multi-paper-covered copper conductors and connection cables designed specifically for transformers.

DCG Cables & Wires Headlines

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