Newgen Software Technologies (NSE:NEWGEN) Interest Coverage : 91.01 (As of Mar. 2025)

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What is Newgen Software Technologies 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. Newgen Software Technologies's Operating Income for the three months ended in Mar. 2025 was ₹1,286 Mil. Newgen Software Technologies's Interest Expense for the three months ended in Mar. 2025 was ₹-14 Mil. Newgen Software Technologies's interest coverage for the quarter that ended in Mar. 2025 was 91.01. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Newgen Software Technologies Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Newgen Software Technologies's Interest Coverage or its related term are showing as below:

NSE:NEWGEN' s Interest Coverage Range Over the Past 10 Years
Min: 8.81 Med: 37.72 Max: 85.61
Current: 71.91

NSE:NEWGEN's Interest Coverage is ranked better than
64.04% of 1674 companies
in the Software industry
Industry Median: 26.06 vs NSE:NEWGEN: 71.91

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

Newgen Software Technologies Interest Coverage Historical Data

The historical data trend for Newgen Software Technologies'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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Newgen Software Technologies Interest Coverage Chart

Newgen Software Technologies Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Interest Coverage

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47.02

85.61

55.90

62.26

71.91

Newgen Software Technologies Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial															95.98	39.83	78.79	70.95	91.01

Competitive Comparison of Newgen Software Technologies's Interest Coverage

For the Software - Infrastructure subindustry, Newgen Software Technologies'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.

Newgen Software Technologies's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Newgen Software Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Newgen Software Technologies's Interest Coverage falls into.

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Newgen Software Technologies 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.

Newgen Software Technologies's Interest Coverage for the fiscal year that ended in Mar. 2025 is calculated as

Here, for the fiscal year that ended in Mar. 2025, Newgen Software Technologies's Interest Expense was ₹-48 Mil. Its Operating Income was ₹3,432 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹408 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2025 )	/	Interest Expense (A: Mar. 2025 )
	=	-1	*	3431.64	/	-47.72
	=	71.91

Newgen Software Technologies's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Newgen Software Technologies's Interest Expense was ₹-14 Mil. Its Operating Income was ₹1,286 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹408 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	1285.656	/	-14.127
	=	91.01

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

Newgen Software Technologies (NSE:NEWGEN) 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 .

Newgen Software Technologies Interest Coverage Related Terms

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

Newgen Software Technologies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Newgen Software Technologies Ltd (NSE:NEWGEN) » Definitions » Interest Coverage

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540900:India

Address

E-44/13, Okhla Phase II, New Delhi, IND, 110020

Website

http://www.newgensoft.com

Newgen Software Technologies Ltd is a software company. It is engaged in software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging. The entity's geographical segments are India; USA, and Africa (EMEA); Asia Pacific (APAC); and the United States of America (USA). It generates key revenue from India and the EMEA region. The company's NewgenONE Platform is a unified low-code platform for end-to-end automation at scale for enterprises. The platform offerings include Contextual Content Services (ECM), Intelligent Process Automation (BPM), Omnichannel Customer Engagement (CCM), and Low Code Application Development.

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