Deccan Transcon Leasing (NSE:DECCANTRAN) Interest Coverage : 5.74 (As of Mar. 2024)

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What is Deccan Transcon Leasing 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. Deccan Transcon Leasing's Operating Income for the six months ended in Mar. 2024 was ₹169 Mil. Deccan Transcon Leasing's Interest Expense for the six months ended in Mar. 2024 was ₹-29 Mil. Deccan Transcon Leasing's interest coverage for the quarter that ended in Mar. 2024 was 5.74. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Deccan Transcon Leasing's Interest Coverage or its related term are showing as below:

NSE:DECCANTRAN' s Interest Coverage Range Over the Past 10 Years
Min: 5.39 Med: 6.08 Max: 7.04
Current: 5.74

NSE:DECCANTRAN's Interest Coverage is ranked worse than
51.67% of 838 companies
in the Transportation industry
Industry Median: 6.05 vs NSE:DECCANTRAN: 5.74

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

Deccan Transcon Leasing Interest Coverage Historical Data

The historical data trend for Deccan Transcon Leasing'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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Deccan Transcon Leasing Interest Coverage Chart

Deccan Transcon Leasing Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Interest Coverage

5.39

7.04

6.42

5.74

Deccan Transcon Leasing Semi-Annual Data
	Mar21	Mar22	Mar23	Mar24
Interest Coverage	5.39	7.04	6.42	5.74

Competitive Comparison of Deccan Transcon Leasing's Interest Coverage

For the Integrated Freight & Logistics subindustry, Deccan Transcon Leasing'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.

Deccan Transcon Leasing's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Deccan Transcon Leasing's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Deccan Transcon Leasing's Interest Coverage falls into.

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Deccan Transcon Leasing 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.

Deccan Transcon Leasing'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, Deccan Transcon Leasing's Interest Expense was ₹-29 Mil. Its Operating Income was ₹169 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹118 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	168.553	/	-29.377
	=	5.74

Deccan Transcon Leasing's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the six months ended in Mar. 2024, Deccan Transcon Leasing's Interest Expense was ₹-29 Mil. Its Operating Income was ₹169 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹118 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	168.553	/	-29.377
	=	5.74

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

Deccan Transcon Leasing (NSE:DECCANTRAN) 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 .

Deccan Transcon Leasing Interest Coverage Related Terms

Thank you for viewing the detailed overview of Deccan Transcon Leasing's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Deccan Transcon Leasing Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Deccan Transcon Leasing Ltd (NSE:DECCANTRAN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Image Garden Road, Suite No 507, 5th floor, Image Capital Park, Madhapur, Shaikpet, Hyderabad, TG, IND, 500081

Website

https://www.deccantrans.com

Deccan Transcon Leasing Ltd is engaged in end-to-end solutions for freight & shipping services which include domestic logistic of tank containers, Tank fleet management solution, custom clearance and transportation, Non-Vessel Operating Common Carriers (NVOCC) services. It is mainly engaged in providing tank containers on lease and logistic & supply chain solutions to clients in various sectors and specializes in the transportation of bulk liquids and hazardous chemicals, utilizing tank containers as a mode of transport.

Deccan Transcon Leasing Headlines

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