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Dynacons Systems & Solutions (NSE:DSSL) Interest Coverage : 7.89 (As of Dec. 2024)


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What is Dynacons Systems & Solutions 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. Dynacons Systems & Solutions's Operating Income for the three months ended in Dec. 2024 was ₹268 Mil. Dynacons Systems & Solutions's Interest Expense for the three months ended in Dec. 2024 was ₹-34 Mil. Dynacons Systems & Solutions's interest coverage for the quarter that ended in Dec. 2024 was 7.89. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dynacons Systems & Solutions's Interest Coverage or its related term are showing as below:

NSE:DSSL' s Interest Coverage Range Over the Past 10 Years
Min: 1.44   Med: 2.2   Max: 11.16
Current: 11.16


NSE:DSSL's Interest Coverage is ranked worse than
64% of 1622 companies
in the Software industry
Industry Median: 28.11 vs NSE:DSSL: 11.16

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


Dynacons Systems & Solutions Interest Coverage Historical Data

The historical data trend for Dynacons Systems & Solutions'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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Dynacons Systems & Solutions Interest Coverage Chart

Dynacons Systems & Solutions Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.02 2.66 4.00 5.72 10.29

Dynacons Systems & Solutions Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 Premium Member Only 9.87 17.91 10.81 13.89 7.89

Competitive Comparison of Dynacons Systems & Solutions's Interest Coverage

For the Information Technology Services subindustry, Dynacons Systems & Solutions'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.


Dynacons Systems & Solutions's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Dynacons Systems & Solutions's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dynacons Systems & Solutions's Interest Coverage falls into.



Dynacons Systems & Solutions 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.

Dynacons Systems & Solutions'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, Dynacons Systems & Solutions's Interest Expense was ₹-74 Mil. Its Operating Income was ₹766 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹113 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2024 )/Interest Expense (A: Mar. 2024 )
=-1*766.218/-74.483
=10.29

Dynacons Systems & Solutions's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Dynacons Systems & Solutions's Interest Expense was ₹-34 Mil. Its Operating Income was ₹268 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*268.201/-33.986
=7.89

* 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.


Dynacons Systems & Solutions  (NSE:DSSL) 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 .


Dynacons Systems & Solutions Interest Coverage Related Terms

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


Dynacons Systems & Solutions Business Description

Traded in Other Exchanges
Address
Subhash Road, 3rd Floor, A Wing, Sunteck Centre, Near Garware Chowk, Vile Parle East, Mumbai, MH, IND, 400 057
Dynacons Systems & Solutions Ltd is an India-based IT company providing end-to-end technology services. It operates in two segments: System Integration and Services, and Technology Workforce Augmentation. The company's offerings include enterprise IT and office automation services such as IT infrastructure managed services, break-fix services, managed print services, cloud computing, system integration, and application development and maintenance. It also provides IT infrastructure design, consulting, and turnkey systems integration of large networks and data centers. The majority of its revenue is generated from India.

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