GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Oriental Aromatics Ltd (NSE:OAL) » Definitions » Interest Coverage

Oriental Aromatics (NSE:OAL) Interest Coverage : 1.50 (As of Mar. 2025)


View and export this data going back to 2019. Start your Free Trial

What is Oriental Aromatics 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. Oriental Aromatics's Operating Income for the three months ended in Mar. 2025 was ₹129 Mil. Oriental Aromatics's Interest Expense for the three months ended in Mar. 2025 was ₹-86 Mil. Oriental Aromatics's interest coverage for the quarter that ended in Mar. 2025 was 1.50. The higher the ratio, the stronger the company's financial strength is.

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

NSE:OAL' s Interest Coverage Range Over the Past 10 Years
Min: 1.33   Med: 7.35   Max: 105.02
Current: 2.75


NSE:OAL's Interest Coverage is ranked worse than
78.62% of 1188 companies
in the Chemicals industry
Industry Median: 9.72 vs NSE:OAL: 2.75

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


Oriental Aromatics Interest Coverage Historical Data

The historical data trend for Oriental Aromatics'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.

* Premium members only.

Oriental Aromatics Interest Coverage Chart

Oriental Aromatics Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 105.02 22.82 3.01 1.33 2.75

Oriental Aromatics 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.60 4.25 3.70 2.54 1.50

Competitive Comparison of Oriental Aromatics's Interest Coverage

For the Specialty Chemicals subindustry, Oriental Aromatics'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.


Oriental Aromatics's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Oriental Aromatics's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Oriental Aromatics's Interest Coverage falls into.


;
;

Oriental Aromatics 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.

Oriental Aromatics'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, Oriental Aromatics's Interest Expense was ₹-254 Mil. Its Operating Income was ₹697 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹822 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*697.102/-253.78
=2.75

Oriental Aromatics's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Oriental Aromatics's Interest Expense was ₹-86 Mil. Its Operating Income was ₹129 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹822 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*128.917/-86.217
=1.50

* 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.


Oriental Aromatics  (NSE:OAL) 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 .


Oriental Aromatics Interest Coverage Related Terms

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


Oriental Aromatics Business Description

Traded in Other Exchanges
Address
Mahatma Gandhi Road, 133, Jehangir Building, 2nd Floor, Fort, Mumbai, MH, IND, 400 001
Oriental Aromatics Ltd is Indian based company engaged in the business of manufacturing of fine chemicals along with its principal products and services including Perfumery Chemicals, Camphor, and Isoborneol. The organization also manufactures and sells camphor, terpineols, resins, aromatic and terpene chemicals, fragrance chemicals, and fragrance chemical intermediaries. The firm offers a range of products, which consists of synthetic camphor, terpineols, pine oils, resins, astromusk, perfumery chemicals, and specialty chemicals. The primary segment of the company is the manufacturing of fine chemicals. It operates in two geographical segments: Domestic and Export. The company makes the majority of its revenue within operations in India.

Oriental Aromatics Headlines

No Headlines