Rappid Valves (India) (NSE:RAPPID) Interest Coverage : 5.65 (As of Mar. 2024)

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What is Rappid Valves (India) 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. Rappid Valves (India)'s Operating Income for the six months ended in Mar. 2024 was ₹68.5 Mil. Rappid Valves (India)'s Interest Expense for the six months ended in Mar. 2024 was ₹-12.1 Mil. Rappid Valves (India)'s interest coverage for the quarter that ended in Mar. 2024 was 5.65. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Rappid Valves (India)'s Interest Coverage or its related term are showing as below:

NSE:RAPPID' s Interest Coverage Range Over the Past 10 Years
Min: 1.44 Med: 1.6 Max: 5.65
Current: 5.65

NSE:RAPPID's Interest Coverage is ranked worse than
71.4% of 2283 companies
in the Industrial Products industry
Industry Median: 15.75 vs NSE:RAPPID: 5.65

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

Rappid Valves (India) Interest Coverage Historical Data

The historical data trend for Rappid Valves (India)'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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Rappid Valves (India) Interest Coverage Chart

Rappid Valves (India) Annual Data

Trend

Mar22

Mar23

Mar24

Interest Coverage

1.44

1.60

5.65

Rappid Valves (India) Semi-Annual Data
	Mar22	Mar23	Mar24
Interest Coverage	1.44	1.60	5.65

Competitive Comparison of Rappid Valves (India)'s Interest Coverage

For the Specialty Industrial Machinery subindustry, Rappid Valves (India)'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.

Rappid Valves (India)'s Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Rappid Valves (India)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Rappid Valves (India)'s Interest Coverage falls into.

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Rappid Valves (India) 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.

Rappid Valves (India)'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, Rappid Valves (India)'s Interest Expense was ₹-12.1 Mil. Its Operating Income was ₹68.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹18.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	68.45	/	-12.114
	=	5.65

Rappid Valves (India)'s Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the six months ended in Mar. 2024, Rappid Valves (India)'s Interest Expense was ₹-12.1 Mil. Its Operating Income was ₹68.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹18.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	68.45	/	-12.114
	=	5.65

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

Rappid Valves (India) (NSE:RAPPID) 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 .

Rappid Valves (India) Interest Coverage Related Terms

Thank you for viewing the detailed overview of Rappid Valves (India)'s Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Rappid Valves (India) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Rappid Valves (India) Ltd (NSE:RAPPID) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Genesis Industrial Complex, Plot No.30 & 31, Village Kolgaon, Palghar (East), District Palghar, Thane, MH, IND, 401404

Website

https://www.rappidvalves.in

Rappid Valves (India) Ltd is an engineering company engaged in the manufacturing of Valve solutions. Its product portfolio includes Ball valves, Gate Valves, Globe Valves, Butterfly Valves, Check Valves, Double Block valves, Strainer Valves and Marine Valves which are manufactured using ferrous and non-ferrous materials, sizes ranging from 15mm to 600mm catering to diverse requirement.

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