Five Core Electronics (NSE:FIVECORE) Interest Coverage: 3.73 (As of Dec. 2018)


What is Five Core Electronics Interest Coverage?

Five Core Electronics NSE:FIVECORE Interest Coverage is 3.73 as of Dec. 2018.

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. Five Core Electronics's Operating Income for the three months ended in Dec. 2018 was ₹68 Mil. Five Core Electronics's Interest Expense for the three months ended in Dec. 2018 was ₹-18 Mil. Five Core Electronics's interest coverage for the quarter that ended in Dec. 2018 was 3.73. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Five Core Electronics's Interest Coverage or its related term are showing as below:


NSE:FIVECORE's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 13.73
* 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.

Five Core Electronics  (NSE:FIVECORE) 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 .

Five Core Electronics Interest Coverage Related Terms

Five Core Electronics Interest Coverage Historical Data

* Premium members only.

The historical data trend for Five Core Electronics'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.

Five Core Electronics Interest Coverage Chart

Five Core Electronics Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
Interest Coverage
Get a 7-Day Free Trial 1.84 1.07 1.41 1.24 2.92

Five Core Electronics Quarterly Data
Mar13 Mar14 Mar15 Mar16 Mar17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 4.44 2.19 3.89 4.28 3.73

NSE:FIVECORE vs : Interest Coverage Comparison

For the Consumer Electronics subindustry, Five Core Electronics'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.

Five Core Electronics Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Five Core Electronics's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Five Core Electronics's Interest Coverage falls into.


Five Core Electronics 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.

Five Core Electronics's Interest Coverage for the fiscal year that ended in Mar. 2018 is calculated as

Here, for the fiscal year that ended in Mar. 2018, Five Core Electronics's Interest Expense was ₹-76 Mil. Its Operating Income was ₹222 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹166 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2018 )/Interest Expense (A: Mar. 2018 )
=-1*221.635/-75.869
=2.92

Five Core Electronics's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the three months ended in Dec. 2018, Five Core Electronics's Interest Expense was ₹-18 Mil. Its Operating Income was ₹68 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2018 )/Interest Expense (Q: Dec. 2018 )
=-1*68.23/-18.315
=3.73

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 3.73 mean?
Five Core Electronics (NSE:FIVECORE) has a Interest Coverage of 3.73 as of Dec. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Five Core Electronics and its competitors.
Is Five Core Electronics' Interest Coverage too high?
Five Core Electronics' current Interest Coverage is 3.73. The Hardware industry median Interest Coverage is 13.73. Five Core Electronics' value of 3.73 is 72.8% below this industry median.
How does Five Core Electronics' Interest Coverage compare to ?
Five Core Electronics' Interest Coverage of 3.73 can be compared against companies in the Hardware industry. The industry median Interest Coverage is 13.73. Five Core Electronics' value of 3.73 is 72.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Five Core Electronics's current Interest Coverage of 3.73 is 72.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Five Core Electronics and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Five Core Electronics's current Interest Coverage is 3.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Five Core Electronics stock overvalued right now?
Five Core Electronics (NSE:FIVECORE) has a current Interest Coverage of 3.73. The current Interest Coverage is 3.73 and 72.8% below the Hardware industry median of 13.73. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Five Core Electronics (NSE:FIVECORE), the current Interest Coverage is 3.73 as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Five Core Electronics Business Description

Comparable Companies
Address Uggarsain Market, Ashok Nagar, WZ-15B, Ground Floor, New Delhi, IND, 110018
Five Core Electronics Ltd is mainly engaged in Manufacturing and Trading of Electronics and Electricals items with their components. Its products portfolio includes Microphones, Speakers, Amplifiers, Mixers, Conference systems, Megaphones, Horns, Bass Tubes, Tweeters, Home Theaters, Car Speakers, Wall and Ceiling Speakers, TV and other electronics / electrical goods. The company exports its products to U.S.A, U.K, China, Hong Kong, Columbia, Singapore, Dubai, S.A, Saudi Arabia, Kuwait, Nepal, Egypt, Brazil, Argentina, Tanzania, Nigeria, and Bangladesh.