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. Libas Consumer Products's
Operating Income
for the
three
months ended in Sep. 2024 was ₹22.2 Mil. Libas Consumer Products's Interest Expense for the
three
months ended in Sep. 2024 was ₹-4.1 Mil.
Libas Consumer Products's interest coverage for the quarter that ended in Sep. 2024 was 5.48.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Libas Consumer Products's Interest Coverage or its related term are showing as below:
NSE:LIBAS's Interest Coverage is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 5.43 * Ranked among companies with meaningful Interest Coverage only.
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 .
Libas Consumer Products Interest Coverage Related Terms
Libas Consumer Products Interest Coverage Historical Data
* Premium members only.
The historical data trend for Libas Consumer Products'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.
NSE:LIBAS vs RL, LEVI, VFC: Interest Coverage Comparison
For the Apparel Manufacturing subindustry, Libas Consumer Products'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.
Libas Consumer Products Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Libas Consumer Products's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Libas Consumer Products's Interest Coverage falls into.
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:
* 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.
Libas Consumer Products (NSE:LIBAS) has a Interest Coverage of 5.48 as of Sep. 2024. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Libas Consumer Products and its competitors.
Is Libas Consumer Products' Interest Coverage too high?
Libas Consumer Products' current Interest Coverage is 5.48. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.43. Libas Consumer Products' value of 5.48 is 0.9% above this industry median. Overall, Libas Consumer Products has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Libas Consumer Products' Interest Coverage compare to RL and LEVI?
Libas Consumer Products' Interest Coverage of 5.48 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Interest Coverage is 5.43. Libas Consumer Products' value of 5.48 is 0.9% above 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.43, based on 743 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. Libas Consumer Products's current Interest Coverage of 5.48 is 0.9% above 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 Libas Consumer Products and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Libas Consumer Products's current Interest Coverage is 5.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Libas Consumer Products stock overvalued right now?
Libas Consumer Products (NSE:LIBAS) has a current Interest Coverage of 5.48. The current Interest Coverage is 5.48 and 0.9% above the Manufacturing - Apparel & Accessories industry median of 5.43. Libas Consumer Products' overall GF Score™ is 4/100. 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 Libas Consumer Products (NSE:LIBAS), the current Interest Coverage is 5.48 as of Sep. 2024. 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.
Libas Consumer Products Ltd is an Indian firm engaged in the business of manufacturing apparel. The company offers clothing for men and women which includes shirts, trousers, blazers, jackets, suits, sarees, among others. The business operates in a single segment being manufacturing and dealing in textiles. It derives revenue from the domestic sale of goods.
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