Esprit Stones (NSE:ESPRIT) Interest Coverage : 2.13 (As of Mar. 2024)

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What is Esprit Stones 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. Esprit Stones's Operating Income for the six months ended in Mar. 2024 was ₹90 Mil. Esprit Stones's Interest Expense for the six months ended in Mar. 2024 was ₹-42 Mil. Esprit Stones's interest coverage for the quarter that ended in Mar. 2024 was 2.13. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Esprit Stones Ltd interest coverage is 2.54, which is low.

The historical rank and industry rank for Esprit Stones's Interest Coverage or its related term are showing as below:

NSE:ESPRIT' s Interest Coverage Range Over the Past 10 Years
Min: 1.76 Med: 5.68 Max: 9.69
Current: 2.54

NSE:ESPRIT's Interest Coverage is ranked worse than
74.17% of 302 companies
in the Building Materials industry
Industry Median: 6.195 vs NSE:ESPRIT: 2.54

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

Esprit Stones Interest Coverage Historical Data

The historical data trend for Esprit Stones'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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Esprit Stones Interest Coverage Chart

Esprit Stones Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Interest Coverage

9.69

8.81

1.76

2.54

Esprit Stones Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24
Interest Coverage	N/A	N/A	N/A	2.94	2.13

Competitive Comparison of Esprit Stones's Interest Coverage

For the Building Materials subindustry, Esprit Stones'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.

Esprit Stones's Interest Coverage Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Esprit Stones's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Esprit Stones's Interest Coverage falls into.

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Esprit Stones 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.

Esprit Stones'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, Esprit Stones's Interest Expense was ₹-87 Mil. Its Operating Income was ₹222 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹511 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	222.254	/	-87.332
	=	2.54

Esprit Stones's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the six months ended in Mar. 2024, Esprit Stones's Interest Expense was ₹-42 Mil. Its Operating Income was ₹90 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹511 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	90.058	/	-42.367
	=	2.13

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

Esprit Stones (NSE:ESPRIT) 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 .

Esprit Stones Interest Coverage Related Terms

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

Esprit Stones Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Esprit Stones Ltd (NSE:ESPRIT) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Lakhawali, Khasra No. 1106 - 1109, Revenue Village Bhilwada, Udaipur, RJ, IND, 313001

Website

https://www.espritstones.com

Esprit Stones Ltd is engaged in the manufacturing of engineered stones such as engineered quartz and marble. The products of the company are used for vanities & bathroom surfaces, kitchen countertops, floors and wall cladding furniture, and other interior surfaces used in various residential and non-residential applications. The company has two segments: Engineered Stones and Unsaturated Polyester Resin. The key revenue of the company is generated from Engineered Stones.

Esprit Stones Headlines

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