Mangalam Alloys (NSE:MAL) Interest Coverage : 0.89 (As of Sep. 2024)

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What is Mangalam Alloys 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. Mangalam Alloys's Operating Income for the six months ended in Sep. 2024 was ₹97 Mil. Mangalam Alloys's Interest Expense for the six months ended in Sep. 2024 was ₹-109 Mil. Mangalam Alloys's interest coverage for the quarter that ended in Sep. 2024 was 0.89. 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. Mangalam Alloys Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

NSE:MAL' s Interest Coverage Range Over the Past 10 Years
Min: 0.98 Med: 1.69 Max: 2.1
Current: 0.98

NSE:MAL's Interest Coverage is ranked worse than
89.69% of 446 companies
in the Steel industry
Industry Median: 5.285 vs NSE:MAL: 0.98

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

Mangalam Alloys Interest Coverage Historical Data

The historical data trend for Mangalam Alloys'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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Mangalam Alloys Interest Coverage Chart

Mangalam Alloys Annual Data

Trend

Mar16

Mar17

Mar18

Mar23

Mar24

Interest Coverage

1.59

2.01

2.10

1.69

1.50

Mangalam Alloys Semi-Annual Data
	Mar16	Mar17	Mar18	Sep18	Mar23	Sep23	Mar24	Sep24
Interest Coverage	Get a 7-Day Free Trial			-	N/A	1.96	1.08	0.89

Competitive Comparison of Mangalam Alloys's Interest Coverage

For the Steel subindustry, Mangalam Alloys'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.

Mangalam Alloys's Interest Coverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Mangalam Alloys's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Mangalam Alloys's Interest Coverage falls into.

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Mangalam Alloys 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.

Mangalam Alloys'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, Mangalam Alloys's Interest Expense was ₹-182 Mil. Its Operating Income was ₹272 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹519 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	272.002	/	-181.609
	=	1.50

Mangalam Alloys's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the six months ended in Sep. 2024, Mangalam Alloys's Interest Expense was ₹-109 Mil. Its Operating Income was ₹97 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹435 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	97.225	/	-109.431
	=	0.89

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

Mangalam Alloys (NSE:MAL) 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 .

Mangalam Alloys Interest Coverage Related Terms

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

Mangalam Alloys Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Mangalam Alloys Ltd (NSE:MAL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

GIDC Phase 3, Plot No. 3123-3126, Chattral, Gandhinagar, GJ, IND, 382729

Website

https://www.mangalamalloys.com

Mangalam Alloys Ltd is in the steel manufacturing industry. It is a stainless steel melting unit. Its products include Forging Ingots, Billets, Black Round Bar, Bright Round Bar, Angle Bars, Fasteners, Etc. It operates in one segment manufacturing stainless steel and higher alloy products segment.

Mangalam Alloys Headlines

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