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DC Infotech And Communication (NSE:DCI) Interest Coverage : 4.20 (As of Sep. 2024)


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What is DC Infotech And Communication 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. DC Infotech And Communication's Operating Income for the three months ended in Sep. 2024 was ₹63 Mil. DC Infotech And Communication's Interest Expense for the three months ended in Sep. 2024 was ₹-15 Mil. DC Infotech And Communication's interest coverage for the quarter that ended in Sep. 2024 was 4.20. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for DC Infotech And Communication's Interest Coverage or its related term are showing as below:

NSE:DCI' s Interest Coverage Range Over the Past 10 Years
Min: 2.14   Med: 4.25   Max: 6.62
Current: 4.28


NSE:DCI's Interest Coverage is ranked worse than
74.15% of 1582 companies
in the Hardware industry
Industry Median: 13.475 vs NSE:DCI: 4.28

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


DC Infotech And Communication Interest Coverage Historical Data

The historical data trend for DC Infotech And Communication'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.

DC Infotech And Communication Interest Coverage Chart

DC Infotech And Communication Annual Data
Trend Mar17 Mar18 Feb19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial 2.14 4.25 6.62 5.77 4.82

DC Infotech And Communication Quarterly Data
Mar17 Mar18 Mar19 Jun19 Mar20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 5.02 2.90 9.18 3.29 4.20

Competitive Comparison of DC Infotech And Communication's Interest Coverage

For the Electronics & Computer Distribution subindustry, DC Infotech And Communication'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.


DC Infotech And Communication's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, DC Infotech And Communication's Interest Coverage distribution charts can be found below:

* The bar in red indicates where DC Infotech And Communication's Interest Coverage falls into.



DC Infotech And Communication 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.

DC Infotech And Communication'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, DC Infotech And Communication's Interest Expense was ₹-41 Mil. Its Operating Income was ₹195 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*195.338/-40.506
=4.82

DC Infotech And Communication's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, DC Infotech And Communication's Interest Expense was ₹-15 Mil. Its Operating Income was ₹63 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*62.777/-14.953
=4.20

* 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.


DC Infotech And Communication  (NSE:DCI) 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 .


DC Infotech And Communication Interest Coverage Related Terms

Thank you for viewing the detailed overview of DC Infotech And Communication's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


DC Infotech And Communication Business Description

Traded in Other Exchanges
Address
Mogra Road, Unit No. 2, Aristocrate, Ground Floor, Lajya Compound, Andheri (East), Mumbai, MH, IND, 400069
DC Infotech And Communication Ltd is an IT Solution distribution company. The company has two operating segments; Products, and Security Software and services covering products like cabinets, motherboards, networking, security, surveillance, wireless, broadband, digital signage, firewalls, desktop virtualization, power solutions, and other solutions like network performance, digital performance, cloud security, enterprise security solutions, and other services pertaining to IT networking, data security, and unified communication solutions.