Ramdevbaba Solvent (NSE:RBS) Interest Coverage : 2.81 (As of Mar. 2023)

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What is Ramdevbaba Solvent 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. Ramdevbaba Solvent's Operating Income for the six months ended in Mar. 2023 was ₹163 Mil. Ramdevbaba Solvent's Interest Expense for the six months ended in Mar. 2023 was ₹-58 Mil. Ramdevbaba Solvent's interest coverage for the quarter that ended in Mar. 2023 was 2.81. The higher the ratio, the stronger the company's financial strength is.

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

NSE:RBS's Interest Coverage is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 8.76
* Ranked among companies with meaningful Interest Coverage only.

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

Ramdevbaba Solvent Interest Coverage Historical Data

The historical data trend for Ramdevbaba Solvent'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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Ramdevbaba Solvent Interest Coverage Chart

Ramdevbaba Solvent Annual Data

Trend

Mar21

Mar22

Mar23

Interest Coverage

2.45

2.33

2.81

Ramdevbaba Solvent Semi-Annual Data
	Mar21	Mar22	Mar23
Interest Coverage	2.45	2.33	2.81

Competitive Comparison of Ramdevbaba Solvent's Interest Coverage

For the Packaged Foods subindustry, Ramdevbaba Solvent'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.

Ramdevbaba Solvent's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Ramdevbaba Solvent's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ramdevbaba Solvent's Interest Coverage falls into.

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Ramdevbaba Solvent 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.

Ramdevbaba Solvent's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Ramdevbaba Solvent's Interest Expense was ₹-58 Mil. Its Operating Income was ₹163 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹423 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	162.971	/	-57.986
	=	2.81

Ramdevbaba Solvent's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the six months ended in Mar. 2023, Ramdevbaba Solvent's Interest Expense was ₹-58 Mil. Its Operating Income was ₹163 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹423 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	162.971	/	-57.986
	=	2.81

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

Ramdevbaba Solvent (NSE:RBS) 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 .

Ramdevbaba Solvent Interest Coverage Related Terms

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

Ramdevbaba Solvent Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Ramdevbaba Solvent Ltd (NSE:RBS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Central Avenue Road, Honey Arjun Kaushalya Tower, 2nd Floor, Block No. 205 and 206, Telephone Exchange Chowk, Near HDFC Bank, Nagpur, MH, IND, 440008

Website

https://www.ramdevbabasol.com

Ramdevbaba Solvent Ltd is engaged in the business of manufacturing, distribution, marketing and selling of Physically Refined Rice Bran Oil. It manufactures and sells Rice Bran Oil to FMCG companies. The company manufactures Rice Bran Oil under its own brands Tulsi and Sehat and sells through distributors who in turn sell to various retailers across Maharashtra. The company also produces De-oiled Rice Bran (DORB), which is a by-product in the extraction of Rice Bran Oil, and sells the same as cattle feed, poultry feed, and fish feed in the States of Maharashtra, Goa, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana, Karnataka, Kerala and Tamil Nadu. The company generates all of its revenue from the sale of products.

Ramdevbaba Solvent Headlines

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