Credo Brands Marketing (NSE:MUFTI) Interest Coverage : 4.09 (As of Mar. 2024)

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What is Credo Brands Marketing 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. Credo Brands Marketing's Operating Income for the six months ended in Mar. 2024 was ₹983 Mil. Credo Brands Marketing's Interest Expense for the six months ended in Mar. 2024 was ₹-241 Mil. Credo Brands Marketing's interest coverage for the quarter that ended in Mar. 2024 was 4.09. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Credo Brands Marketing's Interest Coverage or its related term are showing as below:

NSE:MUFTI' s Interest Coverage Range Over the Past 10 Years
Min: 0.35 Med: 3.87 Max: 6.22
Current: 4.09

NSE:MUFTI's Interest Coverage is ranked worse than
64.96% of 762 companies
in the Retail - Cyclical industry
Industry Median: 7.825 vs NSE:MUFTI: 4.09

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

Credo Brands Marketing Interest Coverage Historical Data

The historical data trend for Credo Brands Marketing'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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Credo Brands Marketing Interest Coverage Chart

Credo Brands Marketing Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Interest Coverage

0.35

3.65

6.22

4.09

Credo Brands Marketing Semi-Annual Data
	Mar21	Mar22	Mar23	Mar24
Interest Coverage	0.35	3.65	6.22	4.09

Competitive Comparison of Credo Brands Marketing's Interest Coverage

For the Apparel Retail subindustry, Credo Brands Marketing'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.

Credo Brands Marketing's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Credo Brands Marketing's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Credo Brands Marketing's Interest Coverage falls into.

Credo Brands Marketing 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.

Credo Brands Marketing'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, Credo Brands Marketing's Interest Expense was ₹-241 Mil. Its Operating Income was ₹983 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,863 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	983.4	/	-240.58
	=	4.09

Credo Brands Marketing's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the six months ended in Mar. 2024, Credo Brands Marketing's Interest Expense was ₹-241 Mil. Its Operating Income was ₹983 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,863 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	983.4	/	-240.58
	=	4.09

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

Credo Brands Marketing (NSE:MUFTI) 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 .

Credo Brands Marketing Interest Coverage Related Terms

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

Credo Brands Marketing (NSE:MUFTI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Credo Brands Marketing Ltd (NSE:MUFTI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

544058:India

Address

B-8, MIDC Central Road, Marol, Next to MIDC Police Station, Andheri East, Mumbai, MH, IND, 400093

Website

https://www.credobrands.in

Credo Brands Marketing Ltd is a homegrown brand in the mid-premium and premium men's casual wear market in India. The product offerings range from shirts to t-shirts to jeans to chinos, which cater to all year-round clothing. The Company is primarily engaged in the business of retailing of Men's casual wear under its Brand MUFTI. The company generates the majority of its revenue from the sale of its products.

Credo Brands Marketing (NSE:MUFTI) Headlines

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