Paramount Dye Tec (NSE:PARAMOUNT) Interest Coverage : 11.17 (As of Mar. 2024)

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What is Paramount Dye Tec 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. Paramount Dye Tec's Operating Income for the six months ended in Mar. 2024 was ₹94.4 Mil. Paramount Dye Tec's Interest Expense for the six months ended in Mar. 2024 was ₹-8.5 Mil. Paramount Dye Tec's interest coverage for the quarter that ended in Mar. 2024 was 11.17. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Paramount Dye Tec's Interest Coverage or its related term are showing as below:

NSE:PARAMOUNT' s Interest Coverage Range Over the Past 10 Years
Min: 0.52 Med: 6.78 Max: 18
Current: 11.17

NSE:PARAMOUNT's Interest Coverage is ranked better than
62.72% of 727 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.31 vs NSE:PARAMOUNT: 11.17

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

Paramount Dye Tec Interest Coverage Historical Data

The historical data trend for Paramount Dye Tec'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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Paramount Dye Tec Interest Coverage Chart

Paramount Dye Tec Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Interest Coverage

2.38

0.52

18.00

11.17

Paramount Dye Tec Semi-Annual Data
	Mar21	Mar22	Mar23	Mar24
Interest Coverage	2.38	0.52	18.00	11.17

Competitive Comparison of Paramount Dye Tec's Interest Coverage

For the Textile Manufacturing subindustry, Paramount Dye Tec'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.

Paramount Dye Tec's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Paramount Dye Tec's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Paramount Dye Tec's Interest Coverage falls into.

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Paramount Dye Tec 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.

Paramount Dye Tec'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, Paramount Dye Tec's Interest Expense was ₹-8.5 Mil. Its Operating Income was ₹94.4 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹7.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	94.445	/	-8.456
	=	11.17

Paramount Dye Tec's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the six months ended in Mar. 2024, Paramount Dye Tec's Interest Expense was ₹-8.5 Mil. Its Operating Income was ₹94.4 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹7.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	94.445	/	-8.456
	=	11.17

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

Paramount Dye Tec (NSE:PARAMOUNT) 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 .

Paramount Dye Tec Interest Coverage Related Terms

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

Paramount Dye Tec Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Paramount Dye Tec Ltd (NSE:PARAMOUNT) » Definitions » Interest Coverage

Traded in Other Exchanges

N/A

Address

Machiwara Road, Village Mangarh, Kohara, Ludhiana, PB, IND, 141112

Website

https://www.paramountdyetec.com

Paramount Dye Tec Ltd manufactures yarns by recycling synthetic fiber (recycling synthetic waste), serving the B2B segment of the textile industry. It offers a range of products including synthetic fiber and yarns which include acrylic yarn, polyester yarn, nylon yarn, wool yarn, hand-knitting yarn and acrylic blend yarn with quality, finer impact, and lasting excellence. The company utilizes synthetic waste fibers as its primary raw material, transforming them into quality yarn.

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